A chain of regional bookstores is looking to drive more value from their Google Ads campaigns by creating a value-based bidding strategy for the first time. Which best practice should they follow first in order to get started?
Create a value-based Smart Bidding strategy in their top two campaigns.
Build a large list of negative keywords to tailor traffic and eliminate uninterested consumers.
Begin with a strong measurement and attribution strategy based on their goals.
Enable a volume-based Smart Bidding strategy in all campaigns.
Explanation
When transitioning to value-based bidding in Google Ads, the foundational step is always to ensure your tracking infrastructure is robust and aligned with your business objectives.
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Analysis of Correct Answer(s):
- Begin with a strong measurement and attribution strategy based on their goals. This is the critical first step because value-based bidding (e.g., Target ROAS, Maximize Conversion Value) relies entirely on accurately tracking conversion values. Without properly defined goals, a precise measurement setup (including Google Ads conversion tracking and Google Analytics integration), and an appropriate attribution model, Google's Smart Bidding algorithms won't have the necessary data to optimize for value effectively. This step ensures that the bookstore defines what "value" means to them (e.g., online sales, lead generation for loyalty programs, specific product purchases) and can accurately measure and attribute that value to the correct touchpoints.
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Analysis of Incorrect Options:
- Enable a volume-based Smart Bidding strategy in all campaigns. This is incorrect for several reasons. First, it's a "volume-based" strategy (like Maximize Conversions), not a "value-based" one, so it doesn't align with the bookstore's stated goal. Second, applying any Smart Bidding strategy across all campaigns without a solid data foundation is premature and risky.
- Create a value-based Smart Bidding strategy in their top two campaigns. While starting with a subset of campaigns can be a good testing strategy, simply "creating" the strategy without first ensuring the underlying measurement and attribution are in place is putting the cart before the horse. The strategy won't perform optimally, or even correctly, if the data it relies on isn't accurate.
- Build a large list of negative keywords to tailor traffic and eliminate uninterested consumers. Negative keywords are a crucial ongoing optimization tactic to improve campaign efficiency and traffic quality. However, they are not the first step for enabling a value-based bidding strategy. Before optimizing traffic, you must first establish how you will measure and assign value to the conversions that traffic generates.