Maximize conversions strategies with Google Techniques

Google has recently eliminated the Standalone Maximize Conversions and Maximize Conversions Value Strategies. In this article, we will learn about what are these strategies and conversions and why Google has decided to remove this feature.

In search campaigns, Google announced on Thursday that it will no longer offer strategies that influence conversions and conversion value. Based on an additional specification released by the company in April, Maximize conversion value will continue to be available with an optional target CPA, and Maximize conversion value will also be available with an optional target ROAS. It will soon be possible to combine target cost-per-action (tCPAs) and target return on ad spend (tROASs) into one, but current campaigns will maintain functionality.

Let us understand the Maximize Conversions and Maximize Conversions value in detail.

Maximize Conversions and Maximize Conversions Value

In early 2021, the new bid strategy Maximum Conversions or Maximum Conversions provides the best target fields. With an optional target, Smart Bidding was optimized to these goals the same way it does for Target CPAs and Target ROASs. Maximizing conversion value and Target ROAS behaves in the same way as the Target CPAs and Target ROASs does.

Conversion Maximize makes automatic bid adjustments so the user’s campaign yields the most conversions whilst spending the least amount. The program optimizes bids based on advanced machine learning and provides auction-time bidding which tailors bids according to each auction.

Maximize conversions and the adjustments in Bids

By adjusting their bids according to where, when, and how people search, one can show their ads more or less frequently. The new bid adjustments that Maximize Conversions apply weren’t affected by the existing bid adjustment. The existing bid adjustments weren’t able to be used if the user switches to maximize conversion bidding.

Working of Maximize Conversion

Optimize conversion bidding finds the optimal bid for the user’s ad each time it appears at auction by using historical information about the campaign and evaluating contextual signals. A machine learning algorithm automatically optimizes user’s bids. Additionally, it offers auction-time bidding capabilities that help users obtain the lowest conversion rate for their budget by customizing bids for each and every auction.

How the Maximize Conversions was performed before switching:

The user needs to find out how much they spend on a daily basis. As Maximize conversions try to spend 100% of the user's daily budget, it is possible to increase spending significantly if they have spent far less than your budget.
Then the ROI goals were checked. If users wanted to achieve an ROI goal with their campaigns, for instance, target cost per install (CPI), target cost-per-action (CPA), or ROI on ad spend (ROAS), users might consider using Target CPI or Target CPA bid strategies. These strategies provide automatic bidding for each auction, just like Maximize Conversions, but instead of spending their entire budget on conversions, they aim to achieve the average CPI, CPA, or ROAS they had set.

Users are required to use the tools such as budget simulators and impression share metrics when using Maximize conversion bidding or Maximize conversion value bidding to understand their budget opportunity.

There is a conflict between impression share values of "Lost IS (budget)” in Google Ads and bid strategies that maximize conversions. Using a Maximize conversion or Maximize conversion value bid strategy makes the use of the user’s entire daily budget and is "limited by budget" by design since the budget that the user chooses restricts the campaigns. Budget simulators account for it, but the "Lost IS (budget)" column had no such account since it uses a different definition.

Comparison between old and new bid strategies

The aim is to maximize conversions in the set budget. As per the old bidding strategy, it is used to maximize conversions. As per the new bidding strategy, it will be able to maximize conversions with no tCPA specified.
The aim is to maximize conversions to the tCPA. As per the old bidding strategy, it performs the tCPA task. As per the new bidding strategy, it will maximize conversion using the tCPA.
The aim is to maximize conversion value in the set budget. As per the old bidding strategy, it is used to maximize conversion value. As per the new bidding strategy, it will be able to maximize conversion value with no tROAS specified.
The aim is to maximize conversions to the tROAS. As per the old bidding strategy, it performs the tROAS task. As per the new bidding strategy, it will maximize conversion value using the tROAS.

tCPA and tROAS to be gone soon

Google has made an announcement saying that within the next few weeks, standard campaigns will no longer be able to use target CPA [tCPA] and target ROAS [tROAS]. One should set optional targets rather than using the outdated bid strategies. A new version of campaign bid strategies will be released next year; the new edition of portfolio bid strategies will be released in 2012.

It means that advertisers won't be able to create new campaigns using the old tCPA and tROAS strategies within the next few weeks, but existing campaigns should still work normally until Google consolidates them to the new formats sometime in 2022.

Conclusion

According to Google, this new update will not affect the bidding behavior. Google said that A bidding strategy based on Maximize conversions will work the same way as a bidding strategy based on Target CPAs.

PPC professionals should be aware of this change so they know how to create the appropriate campaigns moving forward. The current tCPA and tROAS campaigns will continue to run as long as they are active. Google said that they will notify us in advance when the old bid strategies are automatically converted in 2022. Bidding behavior will not be affected by this switch.

Therefore, here we learned that Google is all set with its new plans for the bidding adjustments and will come up with the new format in 2022. The old tCPA and tROAS bid strategies will no longer be available to perform by the user for the standard campaigns.

We hope that the above-provided information proves fruitful to you, thanks for reading!

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