Question: How does value-based bidding work?
- Value-based bidding is a Smart Bidding strategy that uses machine learning to drive the highest target impression share possible, by bidding for conversions that drive business objectives.
- Value-based bidding is a Smart Bidding strategy that uses machine learning to drive the highest click-through rate possible, by bidding for conversions that drive business objectives.
- Value-based bidding is a Smart Bidding strategy that uses machine learning to drive the highest conversion value possible, by bidding for conversions that drive business objectives.
- Value-based bidding is a Smart Bidding strategy that uses machine learning to drive the highest impressions possible, by bidding for conversions that drive business objectives.
The correct answer is: Value-based bidding is a Smart Bidding strategy that uses machine learning to drive the highest conversion value possible, by bidding for conversions that drive business objectives.
Explanation: Value-based bidding in Google Ads uses machine learning to focus on getting conversions that bring the most value to your business—not just the highest number of conversions. By giving high-quality data (like purchase value, profit margin, or customer lifetime value) to Google’s AI, it can accurately predict and optimize for the most valuable conversions using billions of real-time signals such as device, location, time of day, and user behavior.This strategy helps you make better use of your ad budget by prioritizing high-value customers and profitable actions. It works with both static values (e.g., fixed product profit) and dynamic values (e.g., predicted lifetime value), making it flexible for different business goals.By using value-based bidding, advertisers can improve campaign performance, maximize return on ad spend (ROAS), and drive more meaningful results from their Google Ads campaigns.