What are two types of value-based Smart Bidding strategies?

|

Lata Bala

value-based Smart Bidding

What are two types of value-based Smart Bidding strategies?

  • Maximize conversion value with target ROAS
  • Manual CPC
  • Target impression share
  • Maximize conversion value

The correct answers are:
✅ Maximize conversion value with target ROAS
✅ Maximize conversion value

Google Ads Search Certification

Why Correct?

These two are value-based Smart Bidding strategies in Google Ads. They focus not just on getting conversions, but on getting the highest possible value from those conversions — such as higher revenue or profit.

Let’s break them down:

1. Maximize conversion value with target ROAS ✅

Why it’s correct:
This strategy aims to get the most conversion value (like revenue) while maintaining a specific Return on Ad Spend (ROAS) target.

Example:
If you set a target ROAS of 500%, Google Ads will try to drive $5 in conversion value for every $1 you spend.

When to use it:
Perfect for eCommerce or service businesses where different conversions (like selling a $20 item vs. a $200 item) have different values.

2. Maximize conversion value ✅

Why it’s correct:
This strategy aims to get you the highest total conversion value possible within your budget — without requiring a specific ROAS goal.

Example:
If you run a store and want to simply maximize the total revenue from your ads, this strategy helps you get the most value, even if ROAS varies.

When to use it:
Useful if you want to let Google optimize freely for the most valuable conversions, especially when you don’t have a fixed ROAS goal.

Why the Other Options Are Incorrect

OptionWhy It’s Wrong
❌ Manual CPCThis is a manual bidding method, not a Smart Bidding strategy.
❌ Target impression shareThis is a visibility-focused bidding strategy, not value-based or conversion-focused.

Summary:

Bidding StrategyTypeFocus
✅ Maximize conversion value with target ROASValue-based Smart BiddingRevenue with a ROAS goal
✅ Maximize conversion valueValue-based Smart BiddingMaximize revenue, no ROAS requirement
❌ Manual CPCManual biddingControl over individual bids
❌ Target impression shareSmart Bidding, but not value-basedAd visibility, not conversion value

Now, if you are ready, then you take the Google Skillshop test for the Google Ads Search Exam. You can also see more Google Ads Search Certification Exam questions.