non-retailers can adopt value-based bidding for Google Ads.

Google’s push for Automation has led to advertisers being more creative in implementing updated best practices. This includes smart bidding strategies that work for companies and verticals.

Value-based bidding is a standard for retail and ecommerce brands. However, verticals that are not in the retail industry have had a difficult time incorporating it into their PPC strategy.

This article examines the challenges that non-retail businesses face in adopting value-based bids in Google Ads, and how you can make it work in your business.

Value-based bidding for non-retail brands

The majority of e-commerce and retail brands are able to seamlessly upgrade their bidding strategys to value-based models.

The revenue has already been set up.

The conversion path (i.e. add to cart, buy, first-time buyer or returning customer value) is clearly defined.

It makes sense to take the steps necessary for a transition.

SaaS? SaaS? Insurance? Insurance? Many advertisers have found it difficult to adapt in these areas.

Value-based bidding is a method that takes into account the customer’s quality and optimizes the bid to maximize the value for the business.

It is possible for companies that are not retail and it will work the same. It should be approached a little differently, both in terms of setup and strategy.

Consider your advertising and website analytics. What are you most proud of?

• How long do your visitors spend on average per visit on your website? This could be a record for the world, so congratulations!
• You must have spent hours and hours making sure that your method of attribution is accurate.
• Does your YouTube channel contribute statistically and consistently to 99% or more of your conversions.
• Do you struggle with conversion rates between the start of a lead and lead submission? You are a great candidate for value-based bidding if you have experienced a drop in conversion rates from generating a lead to submitting it.

Consider the value that your business and your customers will receive from the tagged activities.

If you can answer these questions, then you have proven value-based bidders will work in your business.

There are a few factors that you should consider in the meantime:

• Identification of the conversion actions that should be included
• Definition of conversion rates and values.
• Consider whether you want to include conversions from offline in your data.

Here are some options and thoughts starters for each step.

Determining goals: Which is most important?

The funnel stage plays a crucial role in the overall puzzle.

Many advertisers feel that they have limited options when it comes to deciding which conversion actions are the most important for their bid strategy.

A B2B firm whose primary KPI is qualified lead volume or data limitations cannot optimize bid strategies that low down in the funnel.

For value-based bidders to be effective, it is best to have at least 2-4 conversion actions that are marked with a price.

Many non-retail businesses may find it difficult to decide what is more important for them than the final lead submission, or conversion item at the last step.

Lead form submissions can be the last data point tracked by advertisers via a conversion code or Floodlight.

Marketers must remember that each touchpoint in the customer journey is crucial.

You might include a conversion action such as a pageview or time spent on the site in your bid strategy.

The consumer’s journey is marked by a check mark. Value-based bidding optimizes for more than just lead volume or a high tCPA.

Advertisers can use any data they wish to tag in the algorithm.

It is important to find conversion actions that have a sufficient conversion volume each month (30-50 conversions at minimum), while being placed low enough on the funnel for higher conversion rates.

Secondary and tertiary contact points: The middle of a iceberg

Imagine your customers’ journey.

How many pages or buttons must they visit before they can complete the primary conversion process?

Consider a minimum amount of time spent on the page to improve the quality of leads.

How about creating a “engaged visit” action where time spent on the page must be greater than 30 seconds in order to count as conversion?

Or visiting 3-4 pages, using Google Analytics data to create a custom conversion?

You can then focus on the most important part of the funnel, before you lose out on offline data which may not be available or difficult to import at a regular cadence.

It’s important to choose the right inflection point for these scenarios.

We can optimize lead form submissions because they will be more frequent. Or should we import data offline from submissions, or scrubbed leads for a final touch even though the drop-off rate is higher?

Even if the value of the offline conversions is 100X that of a submitted lead, it’s better to target higher up the funnel, so the bid strategy will be optimized.

Values: What is it worth to me?

After a goal is agreed upon, you can start looking at values. Google offers a calculator to help you get started.

It is also a good idea to have a contact within your company and if you are using analytics, he or she can help you sort through all the data, such as conversion rates, lifetime value, and other variables that may be important to your business.

Conversion rates are the easiest way to start.

Google’s calculator can be used to calculate trickle-down metrics. For example, if you have 100 page visitors who are engaged, 60 leads form starts and 50 submissions of lead forms, each worth $100, then you can calculate these metrics.

You will see that the lead submission you made is valued at $100, the lead form starts at $83, and your pageviews is $50.

Use your CRM to measure the full potential of your customers within your business.

After you have calculated the highest value, work backwards with your analytics team in order to determine the specific values of the events that led up to the primary goal.

Offline data: To ingest or not?

Ingestion of offline data conversion to be included in optimizations is the last commonality.

Best-case scenarios are offline conversions that can be set up in Google Ads and SA360 directly for conversion actions with minimal intermediaries or gaps.

When converting offline, data lags and connectivity problems are common.

Consider your resources to get a head start.

• Have you got a team of 20+ people that can assist in getting everything in order for you?
• You need to contact six different vendors in order to connect each puzzle piece.

Assess your willingness to do heavy lifting and determine how you will achieve full value-based biding. You can start by setting up value-based bids using online tags.

You can use the information on your website and in your advertisements to help you determine your value-based bid.

Your customers can find you online (paid ads), contact you (I’m sure your contact information is somewhere listed – please ensure it is! You’ve set up a great user experience online for your customers to find you (paid ads), reach you (your contact information is listed somewhere, I’m sure – if not, please make sure it is!

By enhancing the online footprint, you can expect to see more of what is outside the web (closed bookings, appointments, and scheduling follow-up meetings).

What sets you apart as a business and an industry?

Both headwinds as well as tailwinds accompany the shift to more automated bidding, and the rise of value-based bids for many verticals.

Businesses that are hesitant to adopt value-based bids due to the setup or effort involved should consider the strategies above as a way to begin their journey.

Advertising will become more automated and exciting in the future, so make sure you are using “best practices” that work for you now before they no longer exist or continue to change.

The first Search Engine Land article to appear was Non-Retail Advertisers can Adopt Value-Based Bidding in Google Ads.