Question: If a client is looking to optimize for higher-value conversions, where should they start?
- By relying on Google's machine learning to make predictions
- By setting a Max CPC limit on the strategy to ensure the cost of the campaign is under control
- By assigning equal values to every conversion that they see on their site
- By using readily available values, or even static or proxy values, such as average order value
Explanation
Optimizing for higher-value conversions starts by assigning values that reflect business impact. Conversion values help Google Ads distinguish between lower-value and higher-value actions. Static or proxy values, such as average order value, can be used when exact transaction-level values are not yet available. Once values are in place, value-based bidding can optimize toward conversion value instead of treating every conversion equally.
Why the other options are incorrect
Max CPC limit is incorrect because manual cost controls do not create value signals for optimization.
Machine learning predictions is incorrect because Google AI needs meaningful conversion value inputs to optimize toward higher-value outcomes.
Equal values is incorrect because equal values prevent Google Ads from prioritizing conversions with greater business impact.
Source for verification
https://support.google.com/google-ads/answer/13064207
https://support.google.com/google-ads/answer/7684216
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