Refine your bid strategy to get better results
Performance Max uses maximize conversions bidding, which automatically adjusts your bids to get as many conversions as possible. You can get even more from your budget by setting a Target cost per action (CPA) or using Maximize conversion value bidding with a Target return on ad spend (ROAS).
How Target CPA works
With Target CPA, you can set the average amount you want to pay per customer action, like a call or purchase. Then Google AI adjusts your bids to get as many conversions as possible within your target budget. For example, if you choose a Target CPA of $10 USD, Google Ads will automatically set your bids to try to get you as many conversions at $10 USD on average. To help improve your performance in every ad auction, this strategy adjusts bids using real-time signals like device, browser, location, time of day, remarketing list, and more. Learn more About Target CPA bidding.
How Maximize conversion value bidding works
Maximize conversion value bidding works to find customers likely to spend the most. It’s a useful strategy for businesses with varied conversion values, like a retailer selling products that range from $20 to $500 each. You define your conversion values or use Merchant Center to dynamically manage your products. Then Google AI predicts the value of a potential conversion every time a user searches, helping you reach high-value customers. It may bid higher for auctions that would result in greater conversion value – for example, bidding higher for a prospective customer predicted to buy $100 worth of goods vs. another predicted to buy $20 worth.
Adding a Target ROAS (return-on-ad-spend) can get you even better performance for your budget – for example, a 300% ROAS means you’d like to generate $3 in revenue for every $1 spent on Google Ads. You can set your own or use the recommended ROAS based on campaign performance and seasonal insights. Learn more About Target ROAS bidding.
Ready to take action?
- Add a Target CPA to a Maximize conversions bid strategy to help you hit your cost-per-acquisition goals and optimize for desired actions like purchases, leads, and more.
- Switch to Maximize conversion value bidding with a Target ROAS if your conversion values vary and you want to prioritize higher-value purchases while maximizing your return on ad spend.
