Maximize Conversion Value - Bidding Strategies Guide Part 3

john: [00:00:11] Everybody has tried to scale a maximize conversion value bidding john: [00:00:17] strategy with target return that spend knows is pretty much impossible john: [00:00:21] Why would you choose maximize conversion value over maximize conversions? john: [00:00:25] Two main points john: [00:00:26] Google, can you make a sale? john: [00:00:27] Yeah, I'm pretty good at making a sale john: [00:00:29] Okay, cool john: [00:00:30] Ignore all the bad sales stuff john: [00:00:31] Whoa, crap john: [00:00:32] Sometimes you can accidentally shoot yourself in the foot john: [00:00:35] so the maximize conversion value with a target return on ad spend does john: [00:00:40] an even harder lock into a finite audience that maximize conversions john: [00:00:44] at a target cost for acquisition john: [00:00:46] Just have it scaled to the john: [00:00:48] Immediately is the reasons why we exist as an agent john: [00:00:51] Google knows exactly where everyone's going all times john: [00:00:58] Talk about maximize conversion value john: [00:01:01] This is a bit different john: [00:01:03] Maximize conversion value takes a lot of the same traits john: [00:01:08] as maximize conversions does john: [00:01:11] But the waiting system internally at Google gives more weight to the size of john: [00:01:17] the conversion rather than if a conversion came in still an audience based bidding john: [00:01:23] Still going after people still less focused on keywords, but there's an john: [00:01:28] added layer of complexity that we've just given Google, which sometimes john: [00:01:32] is good and sometimes is a bad thing john: [00:01:34] And what I mean by that is when you have a maximized conversion value john: [00:01:39] bidding strategy, rather than a maximize conversion bidding strategy, john: [00:01:42] sometimes you can accidentally shoot yourself in the foot john: [00:01:45] what I mean by that is for example, let's say we're spending $20 john: [00:01:51] And Google sees that you have a product list that is varying john: [00:01:54] between $10 and $300 in price john: [00:01:59] Google's gonna say, well, I saw a $20 conversion come in and john: [00:02:03] I've been spending $20 a day john: [00:02:06] Awesome john: [00:02:06] I made a hundred percent Roaz and then it starts to see more, a hundred john: [00:02:10] dollars conversions coming in john: [00:02:12] Okay john: [00:02:13] It's gonna start to go after those more, those people john: [00:02:16] Well now what's your average order value that day john: [00:02:21] If you have five $20 sales and five, $100 sales, 60 ish is where you're gonna land john: [00:02:28] So you're gonna land around the $60 average order value john: [00:02:30] Well, what that do that just gave you a 300% row as automatically john: [00:02:34] Google is trying to get more higher purchase conversions based on the john: [00:02:39] common denominators of those people who are purchasing higher items john: [00:02:44] It's not keyword based again john: [00:02:46] It's person based john: [00:02:49] Are they looking at these products? john: [00:02:50] How long they've been looking at these products? john: [00:02:52] Have they been looking at competitor websites, Google sees everything john: [00:02:55] That's why analytics was invented john: [00:02:56] Google sees where people are going john: [00:02:57] Seeing a tag manager, Google knows exactly where everyone's going john: [00:03:00] All times, all they did is just build a predictability model john: [00:03:03] That's why keywords let's focused on it john: [00:03:05] It's more about the bidding strategy, but what we're doing is we're identifying john: [00:03:10] What is a good, good value of the conversion when we're talking john: [00:03:13] about maximize conversion value john: [00:03:17] Now let's add a little more complexity to the scenario john: [00:03:19] We have a $200 purchase come in and Google's gonna say, well, john: [00:03:24] start to ignore those $20 sales john: [00:03:27] Let's start going after a hundred and $200 sales john: [00:03:30] Why I'm maximizing the conversion value? john: [00:03:33] I will sacrifice five sales for two big john: [00:03:38] Ha john: [00:03:39] So if it's sacrificing five smaller sales for two bigger sales, john: [00:03:42] yes, you did make more money, but your conversions went down john: [00:03:45] Your conversion rate went down john: [00:03:48] Your volume is possibly going down john: [00:03:51] Your daily ad spend is not being spent john: [00:03:53] Why? john: [00:03:55] Well, because you asked Google to go after a harder objective john: [00:04:00] Google john: [00:04:01] Can you make a sale? john: [00:04:01] Yeah, I'm pretty good at making a sale john: [00:04:03] Okay, cool john: [00:04:04] Ignore all the bad sales stuff john: [00:04:05] Whoa, crap john: [00:04:07] Now it's like, okay john: [00:04:07] And now make me sales and make me big sales john: [00:04:11] That's what maximize conversion value is john: [00:04:14] So if you see that the bigger purchases are less frequent, john: [00:04:18] sometimes you can't scale out of it john: [00:04:22] Sometimes it can, again, situational based, but understand that Google is going john: [00:04:26] to try to get rid of the small purchases that are happening at high frequency john: [00:04:31] Well, that's not that great though, because what you're doing is you're john: [00:04:34] throwing out lower sales that are equalizing the higher sales john: [00:04:41] You have a $20 sale john: [00:04:43] You have a $200 sale john: [00:04:45] Great john: [00:04:45] Now your average order value is a hundred john: [00:04:47] That's good especi for you spending $20 a day john: [00:04:50] That's a five extra return john: [00:04:51] Why would you wanna get rid of, of those $20 sales that are increasing your, your john: [00:04:55] conversion increase conversion rate? john: [00:04:57] Now we have to talk about this is gonna be a, a different john: [00:04:59] classroom topic, but it's a LTV john: [00:05:02] Those $20 sales are turning into what over time john: [00:05:05] Well, a $20 sale can turn into a $200 sale that can turn into five, john: [00:05:08] $200 sales over the course of a year john: [00:05:10] Would you want to throw them out because you're focusing on only on higher sales john: [00:05:16] If the repeat rate's nothing and they're never gonna buy again then yeah john: [00:05:19] Then maybe you have to focus on those high sales, but it's always john: [00:05:24] gonna be, it's always gonna be set by the goal of what the client needs john: [00:05:28] If the client needs high amount of sales and at least an average john: [00:05:32] order value, that's decent, don't use maximize conversion value john: [00:05:35] Cause you're gonna toss out the 10 additional sales that could have john: [00:05:38] turned into bigger sales that could have returned later on for the sake of john: [00:05:41] getting fewer high, higher dollar sales john: [00:05:46] Now's a caveat though, to this maximize conversion value is what they call john: [00:05:50] BBB a value-based bidding strategy john: [00:05:53] So value-based bidding strategies allow us to focus on new customer acquisition john: [00:05:59] More often cannot do that john: [00:06:02] Maximize conversions john: [00:06:05] So you can actually take a value-based bidding strategy and say we were john: [00:06:09] actually, well, lemme just do this john: [00:06:11] Let me let me cancel this to see if this is this sun maximize conversion value john: [00:06:15] You can actually wait, this one's a search john: [00:06:18] Oh, I had it in here before we had a, we had search for new customers anyway john: [00:06:23] Oh no, that was a different campaign john: [00:06:25] Quick side note john: [00:06:26] You're gonna be able to use new customer needs search john: [00:06:28] It's just not, not available there john: [00:06:30] But if you're using a performance max, where you get focused on paying more john: [00:06:33] for customers who spend more, that's something that you can use instead of john: [00:06:37] maximize conversion value is if it was a new customer versus returning customer john: [00:06:41] If the new customers are spending more, it will start to get more john: [00:06:44] newer customers have been using it john: [00:06:46] For a while and that's, that's been, that's been helpful, but john: [00:06:49] again, you need high volume john: [00:06:50] You need to have an accurate list john: [00:06:52] You need to upload your list to Google and you need to select it in your settings and john: [00:06:56] conversions for it to actually work well john: [00:06:57] It can't just rely on tag that's too inaccurate john: [00:07:01] So with the, with the maximized conversion value, why would you choose maximize john: [00:07:07] conversion value over maximize convers? john: [00:07:11] Two main points john: [00:07:12] One client doesn't have LTB john: [00:07:15] People are one and done john: [00:07:17] They need to make a high row as good maximize conversion value works john: [00:07:24] Where else does maximize convergence choose better than maximize conversions? john: [00:07:27] Well, maximize conversion value will allow you to go after more newer john: [00:07:30] customers over longer period of time john: [00:07:33] This is not a glitch john: [00:07:34] I'm interrupting the video you're watching because I need to remind john: [00:07:36] you that I'm always looking for people to join our team john: [00:07:38] So if you're passionate about Google ads and you wanna work with the best john: [00:07:41] Google ads agency on the planet, please go to so late.com/apply john: [00:07:45] Speaking of working with the best Google ads agency on the planet, if you're having john: [00:07:48] trouble with Google ads and you want professional help, that's what we do john: [00:07:51] You can go to john: [00:07:52] So lake.com that's S O L eight.com to apply for your john: [00:07:55] free no obligation action plan john: [00:07:57] And if I've given john: [00:07:58] Any level of value at all john: [00:07:59] Maybe think about giving me a thumbs up and subscribe to our channel john: [00:08:03] That's how we choose the YouTube algorithm john: [00:08:04] So they actually know that I know what I'm talking about john: [00:08:06] If you have questions, comments, concerns, or confessions hit john: [00:08:08] me below in the comments john: [00:08:08] And now back to your regularly scheduled program, can't do john: [00:08:12] that maximize conversions john: [00:08:14] So that's good john: [00:08:15] So this is, Hey, I'm okay with getting a little bit less volume john: [00:08:18] If I'm making more profit per sale, you can still scale up john: [00:08:22] maximize conversion value john: [00:08:25] Now let's do TROs Tero S is even harder john: [00:08:31] So maximize conversion value is already harder to maximize convergence john: [00:08:34] because they're asking for bigger sales, but then maximize conversion john: [00:08:37] value with a target return on spend is even harder than maximize conversion john: [00:08:41] value, which is already hard john: [00:08:43] Now we're asking Google spend only the amount of money for a big enough john: [00:08:48] sale to triple my return on that john: [00:08:51] That is a very, very difficult thing to Google, to, to not only do consistently, john: [00:08:56] but also scale everybody that's been has tried to scale a maximize conversion john: [00:09:03] value BI strategy with target return john: [00:09:06] And that's been knows is pretty much impossible john: [00:09:09] You're gonna hit that point of dimension in returns john: [00:09:11] You will never break out of it just won't happen john: [00:09:15] So the reason why you can't just set a million dollar per day budget with john: [00:09:19] a 500% return on ad spend, just have it scaled to the moon immediately is john: [00:09:24] the reasons why we exist as an agency john: [00:09:27] You can't just set a 500% return, a thousand dollars, you know, a john: [00:09:29] minute, we wouldn't all be here john: [00:09:31] We'd all be selling, you know, socks and making millions cuz you know, cause john: [00:09:35] that'd be something that would be easy john: [00:09:37] So the maximize conversion value with a target return on ad spend does john: [00:09:41] an even harder lock into a finite audience than maximize conversions john: [00:09:46] at a target cost for acquisition john: [00:09:48] Because now we can tell Google is okay, member of our, our 100 person example john: [00:09:51] Let me take a sip of water here john: [00:09:52] Talk for like 20 minutes john: [00:09:55] Now with the maximize conversion value with the tar row, as it says, john: [00:09:59] okay, you have a hundred people that you think are gonna convert john: [00:10:01] Yes john: [00:10:02] Who's gonna have a high sale john: [00:10:03] Well, that be 70 of those a hundred people john: [00:10:06] Now who's gonna have a high enough sale john: [00:10:07] That's gonna be quick enough then I'm not gonna have to spend a whole bunch john: [00:10:10] of money on that's gonna convert today john: [00:10:12] 30 of those john: [00:10:13] Okay john: [00:10:13] So now we've taken a hundred people, whittled it down to 60, whittle it john: [00:10:16] down to 30 can't scale that, and that's gonna pay faster unless john: [00:10:23] There's high amounts of bottom of the funnel traffic that we know are gonna john: [00:10:26] convert immediately all day long john: [00:10:28] And there's, they're growing john: [00:10:30] That's rare john: [00:10:33] So what you're doing is you're locking it into even a harder audience john: [00:10:37] that may convert even less often, but your ROAS is gonna be amazing john: [00:10:41] And that's why we see our daily Aspen go from $500 a day to like, john: [00:10:46] It's like, oh my gosh, I, I turn on maximize conversion value john: [00:10:49] And I say at target TRO as a 300% and Google said, cool, I got 12 people door john: [00:10:56] you, you, we whittled it down at 12 john: [00:10:57] Once those 12 are, are gone, then it's done john: [00:11:00] Like you have to restart this whole process john: [00:11:03] Now there's ways to, to expand that audience though, you can john: [00:11:06] set a target return on spend john: [00:11:08] That's not as aggressive john: [00:11:10] If you need a 300% return, you can set a 200 row as john: [00:11:15] And you could be very profitable at 300% john: [00:11:18] Well, wait, wait a minute john: [00:11:18] How did you just said you could set a target returned asset of john: [00:11:21] 200% and get a consistent 300%? john: [00:11:23] Yes john: [00:11:26] The reason being is that you're gonna get 200% sales or a 200% row as sale john: [00:11:30] You're also gonna get a 400% row as sale john: [00:11:33] What that average out to 300% you have to take law of averages john: [00:11:39] If I have a little bit of low, a little bit high, I balance out to where I john: [00:11:43] So if you need a campaign, for example, to hit a 300% return on Aspen, sometimes john: [00:11:47] you can nail it by hitting 180 or two 20 john: [00:11:49] That's the target return, Aspen john: [00:11:51] This, this one here I need, I, I need 150% john: [00:11:55] So I said it a hundred john: [00:11:56] I need to just simply break even I don't even know what this is doing searching john: [00:11:59] I don't even know what this is, is even doing john: [00:12:01] Let's just see there's too many campaigns here john: [00:12:03] Oh, yeah john: [00:12:03] 68% not even spending this one is the search campaign though, that I've john: [00:12:06] already, this one's an Australian company john: [00:12:08] That's a bad example or an Australian brand john: [00:12:10] But let's do this john: [00:12:11] So where do I have a T CPA on this is the UK one, 118% john: [00:12:17] I don't even know what my, my bidding strategy is john: [00:12:19] Yeah, a hundred john: [00:12:19] So I'm asking it to get a hundred is getting 118 john: [00:12:22] This last john: [00:12:23] Okay, so it can get higher john: [00:12:24] So it doesn't, it doesn't stop it from going higher john: [00:12:27] It just means get me at least john: [00:12:29] So when you say, get me at least a is or high volume B, is it john: [00:12:32] still falling above that goal? john: [00:12:34] So you set a goal lower than what you need john: [00:12:36] I need one 50 john: [00:12:38] I'm getting one 18, cuz I set it at 100 above, above my average taking into john: [00:12:42] consideration all my campaigns though john: [00:12:44] And I'm getting a 1 71 still above the goal john: [00:12:48] So I'm keeping volume pie john: [00:12:50] That's how in this last 30 days we made 473 K and spent 275 K john: [00:12:56] So that's because I'm above that goal john: [00:12:58] But I have some campaigns that are giving me volume, giving me john: [00:13:00] Roaz or sorry, giving me sales john: [00:13:02] They're not coming at it high enough RO as, so I'm not spending that much john: [00:13:04] money on 'em, but I can get a 96 here and still spend, you know, I don't john: [00:13:10] 2,500 bucks cuz I made an additional john: [00:13:13] 59 sales that boosts that 8,000 sale number john: [00:13:15] And I'm still above my average U T CPA to your advantage or sorry, TRO is to john: [00:13:20] your advantage, but know that that's not skillable and that's going to die off and john: [00:13:25] you're gonna have to restart that process john: [00:13:27] So that's how T CPA, sorry john: [00:13:29] That's how maximize conversion value with a TRO as works john: [00:13:32] It's a very difficult bidding strategy for Google to use