Google Ads has changed through recent years to prioritize bidding strategies , and as such Lead Generation strategies have had to adapt to automated bidding strategies for best performance. It is in the setup of these bidding strategies that you can assist Google in differentiating between good and bad leads for performance, if you know how.

For instance, if you only use a basic lead form conversion goal without assigning any values, you can’t discern between leads—there’s no way to determine which one holds more value and deserves a larger budget for conversion efforts.

However, if you have additional data indicating that Lead A generates an average of $2,000 per lead while Lead B only yields $50, you can adjust your campaigns to focus on Lead A. This is where the value of conversion goals becomes apparent, guiding your bidding strategies towards prioritizing quality over quantity—shifting from simply maximizing conversions to maximizing conversion value.

Conversion Values in Google Ads

Value-based bidding in Google Ads enables you to assign specific values to various conversion actions. This allows Google’s algorithm to fine-tune its automated bidding based on the significance of each conversion.

Think of it as giving different weights to conversions. For example, an email enquiry could be valued at $25, whilst a Borchure Download may be valued at $50 due to perceived higher intent. This approach ensures that Google prioritizes the higher-value conversions, optimizing your budget for the best return on investment (ROI).

There are two primary strategies for value-based bidding:

Maximize Conversion Value: This strategy focuses on targeting leads with higher conversion values instead of chasing conversion volume within budget. Google will bid more aggressively for high-value conversions based on performance history and attempt to reduce bids lower value conversions and non-converting terms.

Target ROAS (tROAS): With Maximize Conversion Value in place you are able to set a tROAS which instructs Google of your target. For example a tROAS of 100% is breakeven, so if you have a ROAS target of 5 for your campaign(s) you can set your tROAS as 500% to steer Google in the right direction.

It’s important to recognize that Target ROAS is most effective when you have varying values for different conversion actions. For example, if both your form fill and offline lead are assigned the same conversion value, there would be little reason to implement Target ROAS, as the algorithm wouldn’t differentiate between them.

Value Based Bidding

Bidding based on conversion value is generally a more logical approach than simply pursuing the highest number of conversions. Nonetheless, implementing value-based bidding can be complex, requiring careful planning and execution. Timing your transition is key, as initial adjustments can be challenging. One significant change is that you can no longer rely solely on CPA as your primary success metric; instead, you need to accurately track closed deals.

To optimize effectively, focus on the latest step in your sales funnel—be it leads, Sales Qualified Leads (SQLs), Marketing Qualified Leads (MQLs), or closed deals. Ensure that you’re optimizing for a single step to avoid double counting leads. If you lack dynamic values to guide your bidding—such as deal values, lead scoring, or conversion rules in Google Ads—transitioning from CPA to ROAS may not yield favorable results.

Offline Conversions in Google Ads

In many instances when it comes to B2B the sale cycle exceeds 90 days, which is problematic when it comes to Google Ads as that is the window of standard conversions. The ability to feed in true data in regards to conversions is important and this is enabled through Offline Conversions. This is includes conversions in which the deal is closed via email, phone or in-person.

What Are Offline Conversions?
These refer to customer actions that occur outside the digital realm but can still be linked to online marketing efforts. Examples include in-store purchases or phone calls that lead to sales, which aren’t directly traceable through your website. For businesses with lengthy sales cycles, measuring these offline conversions accurately can pose challenges. If your sales cycle lasts more than 90 days, establishing a solid strategy to capture these offline interactions is crucial for evaluating the full impact of your Google Ads campaigns.

Maximize Conversions (Target CPA)

This method is effective for campaigns focused on high conversion volumes such as email enquiries. It is also a great starting point for new campaigns or those with limited data such a new accounts. However, as your campaign evolves it is important to assess your bidding strategy for optimal performance.

Once you’ve achieved over 100 conversions, we suggest switching on Target CPA (Cost Per Acquisition). This change allows you to not only focus on the number of conversions but also on cost efficiency by setting a suggested cap to Google of which you are comfortable with. This enables Google’s algorithm to adjust bids and budget control to maximize conversions while meeting your cost-per-acquisition objectives.

Enhanced Conversions

Value-based bidding is the most effective automated bidding option when you can provide reasonably accurate conversion values. If needed, you can estimate these values based on typical returns from similar conversions. You can also upload offline conversions, such as closed deals, directly from your CRM or manually. This data can significantly enhance your value-based bidding strategy and is valid for up to 90 days after the ad click. By incorporating these practices, you can maximize the conversion value of your Google Ads campaigns effectively.

Challenges in B2B for Google Ads

Long Sales Cycle
For many businesses, sales cycles can extend for months or even years. This lengthy timeline creates significant challenges for marketers, as it may take too long to determine effective strategies.

Customer Lifetime Value
A common issue in attribution is the failure to accurately account for Customer Lifetime Value (CLV). This oversight can result in marketing agencies not receiving the credit they deserve for their contributions. While value-based bidding can improve campaign performance, it often overlooks CLV unless marketers invest additional time and resources to incorporate it effectively.

Marketing/Sales Disconnect
Many marketing agencies struggle with a disconnect from sales teams, lacking access to essential sales data needed to assign accurate values to conversion actions. Without this data, implementing an effective value-based bidding strategy that truly reflects the worth of various conversions becomes difficult. This gap can hinder campaign optimization and negatively affect overall performance.

Summary

Generating leads effectively in Google Ads involves adapting automated bidding strategies that prioritize high-quality leads by assigning values to different conversion actions. Key strategies like Maximize Conversion Value and Target ROAS (Return on Ad Spend) help optimize for conversion value and set spending targets based on expected returns. 

However, challenges such as long sales cycles, accurate data or tracking of Customer Lifetime Value (CLV), and disconnects between marketing and sales teams can affect performance. By tackling these challenges with full team involvement and feeding Google with either accurate or estimated lead values you can go a long way in improving results for B2B lead generation on Google.