When to Generate new leads and customers with Maximize Conversions?

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Google Ads has offered us endless tools to enhance our game in the world of digital marketing, and one of the most recent in its arsenal is Maximize Conversions.

Unlike other strategies such as Target ROAS or CPC, the final objective is not Return on Investment; instead, it sets the budget we have to get more clients.

Although we can achieve conversions with a good PPC strategy, our ads can lose their relevance and stop having an effect. This is where many businesses start considering the list of Google Ad's smart bidding options to get more out of their campaigns. This time we want to talk about Maximize Conversions bid strategy, how to use it, how it compares to others like Maximize Clicks or Maximize Conversion Value and most importantly, when it's the right time to use this method and when you shouldn't do it.

With these objectives in mind, let's investigate more about Max Conversions.

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Keep reading!

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How does Maximize Conversions work?

The max conversions strategy is about using a daily budget for the campaign and automatically Google bids to get the most significant number of prospects for our business. This type of strategy can be effective if you obviously want quantity or even if you want to drive more flow to a new campaign. Google manages to get this information right since the search engine manages your business information from who's your target audience, the budget they operate to, their preferences and the channels in which they tend to be. Have a proper digital marketing funnel in place.

When using this strategy, don't use a shared budget as it tries to get the most out of it, so if it is a shared budget, it'll take the money from your other campaigns.

Pro Recommendation: To make the most of this bidding strategy, ensure you are tracking closely aligned to your business goals. 

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Benefits of Maximize Conversions:

• It works optimally when your campaign has enough historical data about conversions and high-quality keywords.
• It gets more conversions without augmenting your budget.

Disadvantages:

• You don't have control over the Cost Per Action.
• If you don't have enough historical data, Google's AI will make the wrong decisions.

When should you change to Maximize conversions?

Usually, the best time to change to Maximize Conversions is when your Google campaign has had enough historical data. It can be when it is up to 10 to 30 conversions, so you can optimize towards the conversions you programmed. The second-month mark of a campaign is the moment when your campaign has enough data to change to a manual bid strategy.

Maximizing conversions is the most simple conversion-based bid strategy, and it tells Google to find the perfect candidates for conversions. Remember that this bid strategy will take all your daily budget, whether it brings conversions or not. Find this complete guide on the digital marketing funnel.

When you change your bid strategy, your campaign will return to learning mode, but don't worry; usually, it takes up to two weeks for Google to learn how to optimize your campaign. Don't stop the process in two weeks if you notice it is down. Wait for 4 weeks to see the accurate results.

Maximizing conversions is probably the simplest conversion-based bid strategy as it tells Google to find you the most possible conversions within your daily budget.

Once you have exhausted all the potential of your manual campaigns, the best way to continue squeezing the full potential of your ads is with Maximize Conversion, since through its algorithm, you can get those extra leads you want to make your business grow more. Read this article for B2B marketing strategies.

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Source: YouTube.

When not to use Maximize Conversions Bidding?

We addressed the big question of this article, but if we want a complete view of this topic, we should also answer when it isn't a good idea to use it.

This bidding strategy isn't a good option for managing a low-volume campaign. 

For example, if you set up Maximize Conversions and then set a target cost per acquisition (TCPA), you're damaging Google's capacity to find new prospects. In this scenario, the platform won't identify new targets and will only focus on people the platform knows will convert. 

What will happen next is that your daily ad will disappear, and your conversions will stay the same.

If you want quick results or don't want to spend much on your campaigns, Maximize Conversions probably isn't a great fit for your strategy because this can take some time to get results. Check these 5 reasons why a digital agency in Lisbon is the best way to internationalise your business.

Before switching to maximize conversions

So before taking the step to maximize conversions, make sure to...

• Check your average daily monthly budget. This option will spend your complete budget, so if you spend less than your budget, Maximize Conversions could increase it significantly.
• Evaluate your Return-on-investment goals. If your ultimate goal is to target cost per install (CPI), cost per action (CPA) or return on ad spend (ROAS), your best option is to change to Target CPI, Target CPA or Target ROAS. These other strategies can set bids for each auction without spending the whole budget. Read this complete guide on Amazon Listing Optimization.

Maximize conversions Value

Maximizing conversions is not the top-level bid since this category has a subset bid strategy called maximize conversions value. With this, the platform uses Google's algorithm to drive the most conversions with the highest value.

To use this option, you must have a dollar value associated with the conversions you wish to optimize. An example is an eCommerce store that tracks every conversion as a purchase.

Just as with the max conversion, the most recommendable is to change this bid strategy after you reach 10 to 30 value-based conversions, which happens mainly after the first month of running a campaign. Check this guide on investor outreach process.

Google help recommends that if you use maximize conversions, you use tools like the budget simulator and impression share metrics to better understand the budget opportunity available for your campaign. This can only be done when the Target CPA or the Target ROAS isn't set with Maximize conversions strategies.

Also, they don't recommend using the impression share "Lost IS (budget)" in Google ads with Maximize conversions because it isn't compatible with this bid strategy. Remember that maximizing conversions spends the complete budget while the budget simulator accounts for "Lost IS (budget)" doesn't account for this and uses a different definition to account for lost impressions.

Source: Youtube.

How do you create a Maximize Conversion Value bid strategy?

With Maximize Conversion Value, you can manage a single or multiple campaigns portfolio bid strategy. If you think this bid strategy suits your business necessities, the step-by-step to create one is this:

• Create a new campaign
• Change or start from the campaign settings
• Create from your Shared library "Bid strategies" page.

This strategy works like Maximize Conversion, where the AI uses automatic bids to find the right one for your eligible ads. Nevertheless, you must consider that this bid strategy will spend your entire budget, which is different from Maximize Conversions.

But being both of these so similar, you may wonder, what's the difference between them?

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What's the difference between Maximize Conversions and Maximize Conversion Value?

Maximize Conversions bidding

As its name suggests, this bid strategy is for optimizing conversions, but this one focuses on customer actions that convert to sales. For this bidding strategy, you can set your target cost per action (CPA); this means that intelligent bidding brings about as many conversions as possible by using the target cost per action or return on advertising spend (ROAS) that you set.

After all this process, the Maximize Conversion bid strategy will get as many conversions as possible, but it will be within your budget. Check this guide on investor outreach process.

Maximize Conversion Value bidding.

In this case, the value depends on the conversion type, and the price won't exceed your budget. For Maximize Conversion Value bidding, your results depend on two factors, and that is if your strategy comes with a ROAS or without one:

• If you set a target, ROAS Google Ads will generate the highest possible conversion value based on it.
• If you don't set a target ROAS for the Maximize Conversion value, then Google your complete budget to maximize your conversion value for the campaign.

Now that we get a difference between both let's go a bit further and find out how Google Ads optimize conversions.

When you manage a display campaign, the smart bidding option will allow you to identify where your ads can get the highest possible conversions. This process uses data from conversion tracking to boost your campaign's performance.

This method calculates your optimal equivalent cost-per-click whenever your ads become eligible to show on any Display Network site. This feature doesn't mean that you won't pay per click, but instead, it eliminates the task of manually adjusting your bid to reach a desired cost-per-acquisition goal. Ultimately, the bidding strategy helps you boost your investment return, save more time, and maximize conversions.

How can Google Ads optimize for conversions?

As we said in the article, the platform optimizes conversions using smart bidding. This feature helps you track your customer's data and generate more conversions at a significantly low cost. If your ad's placement is optimized in an auction, it will eliminate all unprofitable clicks. This method suits your business as you'll get the highest profitable click for your campaigns. These are some of the most noticeable benefits of Google Ads smart bidding.

• It gets more profits: As you get more conversions at a lower cost, you can invest back into your business.
• Ease of use: This strategy is easy to set up with the automated bidding strategy. Besides, you don't need too much time managing the bids. 
• There are no additional charges.

Nevertheless, if you want smart bidding to work better for you, we recommend installing conversion tracking, as it'll help you to check for direct responses and conversions.

Maximize Conversions vs Maximize Clicks.

A Maximize Click strategy tells Google to send as much traffic to your website based on the parameters of your campaigns and any keyword you're bidding on. 

Nevertheless, rather than competing between both strategies, ideally, Maximize Clicks is the previous step to max conversions. For example, if you're launching a new campaign, the idea is to start with Max Clicks to get some awareness while spending some bullets on the first stair of this process. Once your drive has stopped and has over 30 days - you could have 15 to 20 conversions tracked - you can go one step further and start your Maximize Conversions campaign. 

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If we want to close the circle, an excellent step-by-step to get the most out of these bid strategies is:

• Maximize Clicks
• Maximize Conversions
• Maximize Conversion Value

Maximize Clicks.

Cautions for Maximize conversions

Don't run this campaign without conversion tracking.

The platform will maximize the number of conversions being tracked, but if you don't have tracking conversions, the algorithm is more likely to decide to find a customer likely to convert.

Keep an Eye on CPC

Be careful, Google's algorithm will help you, but it will bid whatever it needs to get the most conversions possible. So, after using this strategy, you can notice an increase in your CPC.

But, although Maximize Conversions can increase some expenses, the increased conversion rate can balance you back out. Your CPC will be higher, but conversions will be growing, resulting in a lower CPA and a higher return on investment. Besides, the new option to add a target CPA can help you keep this in control. Here is a complete guide for you on developing a business development strategy.

Final Thoughts

You must pay attention to the steps before maximizing conversions because if you have not achieved enough conversions or the platform does not have enough data, and you will be draining your best resources unnecessarily.

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FREQUENTLY ASKED QUESTIONS:

1. When to use maximize conversions Google Ads?

The Maximize conversions feature will automatically set bids to help you as many conversions as possible with all the budgets you set. It is essential to acknowledge that when you are using this feature with no Target CPA, the platform we'll spend your budget on upgrading the conversion value for your marketing campaigns.

2.  How many conversions do you need to Maximize Conversions on Google Ads?

Maximize Conversions isn't a good bidding strategy when you are starting. Instead, it would help if you used it when you got at least 15-30 conversions in the last 30 days before thinking about changing this tactic.

3. What is the difference between Maximize Conversions and Maximize Conversion Value?

On the one hand, maximize conversions bidding will try to generate the most conversions for all your budget, no matter the value of these conversions. Meanwhile, maximize conversios value will try to generate the most value for a specific budget.

4. Should you focus on clicks or conversions?

The answer depends. If your goal is for customers to act on your website directly, then your goal should be to focus on conversions. If you want to generate more traffic to your website, instinctively, your aim should be to get more clicks.

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