Value-based bidding is a way of running Google Ads where you attach a money value to each conversion, so the system chases revenue instead of chasing lead count.
Value-based bidding means sending Google a value with every conversion, not just a count. Instead of telling Google a lead happened, you tell it a lead worth $400 happened, or a lead worth $40 happened.
Bid strategies like Target ROAS and Maximize Conversion Value then work to bring in more of the valuable ones. Without values, every conversion looks identical to the system, and the cheapest one wins.
Ecommerce has it easy. The order total is the value. B2B SaaS has no number at the moment of the form fill, so you work backwards from history.
[table]
Conversion | How to work out the value | Example
Demo request | Average deal size times the rate demos close at | $25,000 times 8% equals $2,000
Trial signup | Average deal size times the rate trials close at | $25,000 times 3% equals $750
Content download | Average deal size times a much smaller rate | $25,000 times 0.4% equals $100
SQL created | Average deal size times the rate SQLs close at | $25,000 times 25% equals $6,250
Closed won | The actual contract value | The real number
[/table]
These are estimates, and that is fine. The point is not precision. The point is that a demo request is worth twenty times a content download, and Google needs to know that.
The system stops treating all leads as equal.
Before values, the algorithm hunts for the cheapest conversion it can find. In B2B that is almost always the ebook download from someone who will never buy. Your lead count goes up and your pipeline does not move. That pattern is one of the most common causes of high CAC in Google Ads.
After values, the algorithm can see that one demo request is worth twenty ebook downloads. It will happily pay more for a click that leads to a demo. Cost per lead often rises. Cost per opportunity usually falls. Those two moving in opposite directions is the sign it is working.
This is also how you stop reporting on vanity numbers. Once values are in, the account optimises toward money rather than volume.
Two problems.
All the values are the same. Someone assigns $100 to every conversion action so the reports show a revenue column. That changes nothing. If all values are equal, value-based bidding is just conversion-based bidding with extra steps. The values must differ, and the gaps must reflect reality.
Values are set once and never checked. The close rates you used to calculate them change over time. Deal size changes when you move upmarket. Review the numbers every quarter, or the system spends this year's budget on last year's assumptions.
Work the values out from your own closed deals, and make sure the gaps are large.
Start with your last 50 closed deals. Find the average contract value. Then find, for each conversion type, what share of them eventually closed. Multiply those two numbers. That is your value.
If the result says a demo request is worth $2,000 and a whitepaper download is worth $100, put those numbers in. Do not soften the gap because the download looks poorly treated. The gap is the whole point.
One thing to check before you start. Target ROAS needs a reasonable amount of conversion data before it works well, and it needs real outcomes flowing back through offline conversion import. If your account is producing only a handful of conversions a month, assign values now and stay on Maximize Conversions until the volume catches up.
Sending Google a money value with each conversion instead of just counting conversions. The bidding then works to bring in more of the valuable ones, rather than the cheapest ones it can find.
Multiply your average deal size by the share of that conversion type that eventually closes. A $25,000 average deal with demos closing at 8 percent gives a demo request a value of $2,000. Repeat for each conversion action.
Value-based bidding is the practice of assigning values. Target ROAS is a bid strategy that uses those values to hit a return goal. You need the values in place before the strategy can work.
Usually yes, and that is normal. The system starts paying more for clicks that lead to valuable conversions. Watch cost per opportunity instead. If leads cost more and opportunities cost less, it is working.
Every quarter. Close rates move and deal sizes change as a company goes upmarket. Values set a year ago will push your budget toward the wrong conversions without anyone noticing.
ScalixAI is a performance-driven Google Ads agency specializing in helping high-growth, AI-first companies scale with predictable, profitable customer acquisition. Founded by an ex-Googler with 9 years of insider advertising experience, we manage the entire Google Ads lifecycle—from campaign strategy and account setup to conversion tracking, analytics, and ongoing optimization. Our data-centric, AI-powered approach ensures you know exactly which campaigns are working, why they’re working, and what to do next to outpace your competitors.ScalixAI is a performance-driven Google Ads agency specializing in helping high-growth, AI-first companies scale with predictable, profitable customer acquisition. Founded by an ex-Googler with 9 years of insider advertising experience, we manage the entire Google Ads lifecycle—from campaign strategy and account setup to conversion tracking, analytics, and ongoing optimization.
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