Value-Based Bidding: How-To Analyze Performance Well

Welcome to the fourth installment in our Value-Based Bidding (VBB) deep dive series.

If you missed the first three, here they are for a quick recap!

1. An introduction to Value-Based Bidding (what it does and how it works)
2. Our Value-Based Bidding (VBB) Best Practice Guide outlining some core principles you need to follow to get the best out of your VBB campaigns.
3. A detail rich How-To guide on implementing Value-Based Bidding, including how to share offline data, information on connecting your CRM, first party data and manually assigning value to events.

Now that you’ve set up the best looking Value-Based Bidding strategy around, this fourth installment is focused on helping you analyze the performance!

How-To Analyze Value-Based Bidding Performance Well

We’ve been talking a lot about data and how Google analyzes it for you, but how and when do you analyze Value-Based Bidding performance, and how do you do it well?

1. Review the correct metrics
2. Understand learning periods
3. When to start analyzing data
4. Be conscious of conversion lag
5. Analyze through experimentation
6. Top signals
7. Be aware of conversion lapses

Below we list the principles behind effectively analyzing Value-Based Bidding performance on your accounts.

1. Review the Correct Metrics

It starts with looking at the right metrics. These aren’t impression share, CPC, or similar metrics. You should be looking at CPA, ROAS, conversion value, average transaction value and the number of conversions. Evaluating the wrong metrics can lead to making changes that fight with Smart Bidding rather than helping it. 

2. Understand Learning Periods

It’s also important that you understand the learning phase. Since Smart Bidding uses machine learning, it takes a little time for performance to get into full swing. When implementing Smart Bidding, you should wait to make changes until you leave the learning phase. You can monitor when the learning phase ends via the Bid Strategy Report. Once you’re ready to analyze data, you should come back to the Bid Strategy Report to review data.

3. When to Start Analyzing Data

Let’s face it, we’re always in a hurry. Our first instinct is to start analyzing the data as soon as we start seeing it. When you use Value-Based Bidding, you’ll find that’s a big mistake. Instead, give you campaigns time. Wait until you have more than 50 conversions at the account level before you start evaluating data to make judgments on your Value-Based Bidding performance.

When you first implement a new bidding strategy, there will be a transition period. During this period, the campaign is learning, optimizing and adjusting. According to Google, you’ll need 28 days on a volume conversion bidding strategy with values or 3 conversion cycles (whichever is longer). Try to avoid big changes during this time.

Major changes should be limited during the learning phase. You should also allow a two to four-week post-control period after this is complete. Use this period to understand performance and what changes may need to be made to enhance it. Following these practices will allow you to ensure you’re using the most accurate data.

4. Be Conscious of Conversion Lag

There will be a conversion lag (also known as conversion delay) even when your campaigns aren’t in the learning phase. Remember, most people don’t click and instantly convert. Users will interact with your ads and your website across multiple devices. They’ll also conduct multiple searches as they research and come to a decision. You can read more about it here

5. Analyze Through Experimentation

Reviewing data is one thing. Take it a step further. Once your campaign has conversions, use Drafts and Experiments to test new copy, landing pages, and more. With Google’s AI and your creativity, you’ll skyrocket performance.

Use the target metric comparison in the Bid Strategy Report or Pre- or Post-Metric Analysis Analysis to gain helpful insights into your campaigns’ performance.

6. Top Signals

Your Bid Strategy Report contains a lot of data. That includes top signals. You can see more information about how your campaigns perform at different times of the day or in specific locations. You’ll see top devices, day of week, or even how your remarketing and customer match lists are doing. These insights will help you to make adjustments to your Value-Based Bidding strategy and better understand overall performance.

7. Be Aware of Conversion Lapses

Sometimes conversion tracking breaks, or your campaign stops performing, regardless of why conversions and data lapses pollute your data and reset the Smart Bidding learning phase. When analyzing data, make sure you exclude any periods with conversion lapses.

Takeaways

Phew, that was a lot of information! So to reiterate, you should:

• Set Smart Bidding up for success with Value-Based Bidding.
• Use the right data models.
• Analyze data at the right time.
• Use data signals.
• Evaluate the Bid Strategy report to understand performance better
• Take conversion lag into consideration.