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Welcome to the third installment in our Value-Based Bidding (VBB) series.
If you missed the first two, here they are for a quick recap!
This third installment is the implementation stage, the pièce de résistance. It’s where we get to put ideas into action and implement Value-Based Bidding. We take you through it step-by-step!
Implementing Value-Based Bidding starts with ensuring you have all tracking in place and it’s working properly. Without a good base, everything else is likely to fall flat.
It’s also about strategy. What are you looking to achieve? Perhaps you’d like to scale your leads at a specific cost per acquisition (CPA) or grow your business and you need a particular return on ad spend (ROAS).
This is a fairly weighty tome, so we’ve broken it down into sections, with anchors, for ease of reference.
Once you’ve implemented Value-Based Bidding in your account,
the next installment will take you through how to analyze it!
Set yourself up for success by sharing quality data. You can do this by ensuring your privacy and measurement (conversion tracking settings are set up properly. Take these steps to share quality data with Google.
The bottom line is the more data you give Google’s machine learning, the better your performance will be. Speaking of data, you shouldn’t set up Value-Based Bidding until you have at least 15 conversions per month account-wide. If you don’t wait, and you ask Google to start optimizing based on less data, your results are likely to be ????
First, make sure you’ve changed your conversion settings. Do this by signing in to Google Ads and navigating to the top right. Find Tools and Settings, then click Conversions.
Now, click on one of your conversions. Click the blue Edit settings on the bottom right.
Go down to the last setting Attribution model. Click the dropdown.
Select data driven (or another non-last click model) from the dropdown. Then save, and click done.
Continue this process with all of your conversions. Once you’re done, Google will begin optimizing based on how users interact with your ads.
Offline data can be shared in several ways. The easiest way is to use a third party integration or through the offline conversions API (if you use Google Marketing Platform). Alternatively, you can upload them manually with a .csv file.
How to share offline data with a third party integration: For Salesforce, you’ll need to follow the Salesforce configuration instructions found here. There are also several requirements, which are explained here.
After you get everything set up in Salesforce, the next step is to set up your conversion action to match your Salesforce milestones. Start by following the instructions above to get to your conversion settings. From the left side, choose Upload.
From here, click Select Source and choose your source from the dropdown. The easiest way to bring these over is to choose HTTPS. You’ll be prompted to log into your CRM or email service provider then. You could also upload a file or Google Sheet, just make sure you download the template so you format it correctly.
Alternatively, if you use Hubspot or Salesforce, you can link your account in through the Linked accounts under Tools and settings.
Then, you’ll need to set up your conversion in the conversion settings. Do this by going to Tools and settings select conversions and +New conversion action. On the next screen, click Import. Now, check the radio button for Salesforce.
On the next screen, you’ll choose the account and milestone. Next, is Goal and Action Optimization. This will be a lead category. Select the appropriate one from the dropdown. Enter a conversion name. Make sure the name helps you identify the milestone it connects with.
Click the radio button for the appropriate Value and Count. Next, update the Click-through conversion window and Attribution model (if needed). Last, tap Create and continue.
The next step is to set up the import schedule. You’ll do this by navigating to the Salesforce section on the left side, then clicking Import Schedule. Select the frequency of your import and the time of day from the dropdown. Click Save.
For Hubspot offline data, you’ll take the following steps. First, connect Hubspot to Google Ads as we discussed previously. Then, you’ll need to create ad conversion events in Hubspot and sync them to Google Ads. You can find this detailed in Hubspot’s help documents. Once this step is completed, you can head back over to Google Ads and finish your setup.
Navigate to Conversions as we’ve explained above. Check to make sure the events you created in Hubspot appear here. Review the conversion settings, especially value and attribution mode.
How to share offline data by importing offline conversions: If you use a CRM other than Hubspot or Salesforce, you can still import your offline conversions. Start by preparing your data for the upload. You can use this template to organize your data.
We’ll explain how to import conversions from clicks (which requires the Google Click ID data), but if you want to import enhanced conversions for leads, you can see the directions here. Not sure how to format your spreadsheet for upload? Use Google’s instructions here.
Ok, now let’s import those offline conversions! As with the other methods, navigate to the Conversions in Tools and Settings. From the left menu choose Uploads. Now click the blue + button. In the source dropdown, choose your file source. Your options are file source via SFTP or HTTPS, file upload, or Google Sheets.
Once you’ve chosen your source, you can preview the results of your upload by clicking Preview. Once you’re happy with the results or if you don’t want to see the preview, click Apply.
Previewing your upload will allow you to see any errors, so that you can fix any potential issues before completing the process. Click Details to see the errors and content of your file. You can see all of the content by clicking More.
If you have errors, you fix them and try again. Once you’ve resolved the errors, click Apply file. You’ll see a progress bar at the bottom of the page. When your upload is done, you’ll receive a notification. If you’d like to see the conversions that were imported, you should click Details. As long as everything was imported properly, you’ve completed your import.
Not sure you want to do this manually every time? Learn how to schedule your uploads here.
You can also use Zapier to automate your offline conversion import.
Using consent mode will ensure all of your consent settings are recognized before other triggers fire. Some third party consent management tools integrate with consent mode in Google Tag Manager.
To set up consent mode, sign in to your Google Tag Manager account and open your website’s container. Now, you’ll edit the consent settings for your tags. In our case, we’ll open the Google Ads conversion tag. Click on the tag’s pencil and scroll down to Advanced Settings.
Under Consent Settings receive the Built-In Consent Settings and select Additional Consent Checks as needed. For more information about those settings here. Save and publish your tag.
If you prefer to make bulk edits to all of your tags, you can do this in the Consent Overview under Tags on the left. Don’t forget to publish your container when you’re done.
The best way to teach Google how valuable each conversion is, is to give it a measurable value. For ecommerce brands, this is relatively easy. Ensure you have revenue tracking set up, and transaction values are pulled into Google Ads. You can do this with Google Analytics or Google Ads conversion tracking.
If you generate leads, there are several ways to assign values.
Assigning values manually is quite easy. You’ll do this by going into those conversion settings. Tools and Conversions > Measurement > Conversions and editing one of your conversions. Once you’re inside of the conversion details, scroll down and click Edit settings. Find the dropdown for Value and click on it. You can now assign a value.
If you don’t know the precise value of your conversion action, you can choose a value that indicates relative value when comparing one conversion event to another (e.g. if phone calls are twice as valuable as form fills, assign a $2 value to phone calls and $1 to form fills). This will really help Google’s AI understand which actions are most important.
This one is a bit more complicated, but can be achieved with Google Tag Manager. A data layer is a JavaScript snippet that is used to pass information from your website to your Tag Manager container. The data layer allows you to pass information like transaction data, product data, and marketing data.
You can add a data layer event by logging into your Google Tag Manager account and creating a variable. Before you get started, you’ll want to work with your developer to get the code found in Google Tag Manager’s help documents added first. You’ll need the “key” from your code. This is the variable you want to pull data from.
Once you’ve done this, go to your Google Tag Manager account and click on Variables. Then, under User-Defined Variables find ‘new’ and click. Now hover over Variable Configuration and click the pencil to edit. Select Data Layer Variable from the right side under page variables. Enter the key exactly as it is in the code in Data Layer Variable Name. Leave the Data Layer Version value at default.
Name your variable and save the variable. Then, publish your container.
You can learn how to do this above ^^.
You can learn more about uploading offline data above ^^. When uploading the data, make sure you include data in the conversion value column. This will allow you to optimize based on the value of these conversions.
Before getting started with Value-Based Bidding, you’ll need to adjust your conversion set up. Instead of using campaign based goals, you’ll use account based goals. To do this, go into your conversion actions and ensure they’re set to primary at the account level. Now, you’ll be supplying the correct data to the algorithm.
Now use the full power of Smart Bidding and Value-Based Bidding together by using target ROAS for e-commerce or Maximize Conversion Value for lead generation.
These targets speak to real business value rather than soft values like cost-per-click or cost-per-conversion, which only translate to marketing objectives.
Before starting out with Value-Based Bidding, you should make sure you’re implementing smart creatives.
Using responsive search ads (RSAs) and responsive display ads (RDAs) in your campaigns lets the system test variations and find the best combination of assets. That allows Google to reach the right audience with the right message at the right time. If you focus on producing high quality creatives, Google will do the rest.
Feeling a bit skeptical? We were too. However, it’s all a numbers game in the end and Google holds all the cards when it comes to making data driven ad creative selection.
Here are some testing ideas you should consider when implementing smart creatives.
A/B testing is important. Don’t just rely on the algorithm to choose what it thinks is best. Test RSAs with unpinned copy against RSAs with pinned copy. Another method is to test multiple specific (pinned) messages in separate ads against each other.
Having more to test is better. Don’t just put the minimum number of headlines and descriptions. Create as many variations as you can to test. This will give the algorithm more to work with.
Test length. Test out varying headline and description lengths. Longer doesn’t necessarily mean better. Find what resonates with your audience.
Test headline messaging. Don’t just create headlines with variations of your keyword. Test calls to action, feature callouts, and highlight benefits. Make your headlines stand out.
Use the combinations report. This report will show you the top combinations shown (by impressions). It will give you a better understanding of what Google is showing to potential customers, allowing you to get some limited visibility into the headline/description themes that Google is matching to. From there you can expand on those themes.
Implementing non-last click attribution means using a linear, time decay, or data driven model.
Just a reminder, these are the benefits of a data driven model:
We explain how you can quickly implement this in an earlier section above.
Using first party data gives Smart Bidding the data it needs to find your customers. Aside from Google’s recommendation, it just makes sense to use your own data to teach Google what your customers look like (as people, not aesthetically ????).
When you have multiple lists, Google will determine whether someone belongs to more than one list. Smart Bidding also factors in the recency of the user, so remarketing lists can be kept from being broken down into recent and long-term lists. The system will optimize bids based on when the user was added to the list without you making adjustments on your own.
Smart bidding will also learn which lists bring the most value. For instance, if your abandoned cart audience has a lower cost per acquisition and a higher average order value than your product viewer audience, bids will be optimized for that.
Good news! Adding first party data is easy. (Offline conversions are also a form of first party data).
First, you’ll need to make sure your data is in a spreadsheet and formatted correctly for upload. You can use the Customer List template for formatting. Once this is ready, sign in to your Google Ads account and click on Tools and Settings.
Under Shared Library, click Audience Manager. On the Your Data Segments tab, click the plus button. Choose Customer List and give your audience segment a name. Choose the type of data you’d like to upload and upload the file.
Check the compliance box and update the Membership Duration as needed. Last, click Upload and create. Your list is uploaded and will begin populating. When it’s finished, you can add it to your campaigns!
Note, if you use Google Ad Manager, you’ll have a more diverse set of options for utilizing first party data.
There are different types of first party data. Customer lists, subscriber lists, data collected from surveys, customer loyalty memberships, and more. This is data you collect directly from your customer and own.
First and foremost, you should always ensure you protect the privacy of your site visitors and customers. Breaking their trust can lose customers and potentially put you in violation of the law.
Ask before collecting data. Don’t assume that anyone has allowed you to use their data. Permission is key.
Follow local laws regarding cookies, consent settings, and data collection. Your customers might also have the right to ask for their data to be erased. Honor all requests.
Yep.. this section WAS going to go in here, but frankly, we feel like if you’ve got this far today we need to give you time for a break and a cup of tea. So.. we’ll be back soon with the How-To on analyzing VBB performance in your accounts.
If you can’t possibly wait (we get it, we’re keen too….) then you can read about it here.
We love talking PPC and spend most of our time chatting with agencies, so if you have a question please do drop us a line!
Also, Adpulse comes with a 14-day free trial, and right now the first month is only $19.99/mth, so it’s a low-risk way to try it for yourself. Sign up now!
