Maximize Conversions - Bidding Strategies Guide Part 2

John [00:00:11] Everybody has tried to scale a maximize conversion value bidding

John [00:00:16] strategy with target return that spend knows is pretty much impossible

John [00:00:20] 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 [00:00:33] Sometimes you can accidentally shoot yourself in the foot

John [00:00:36] 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 [00:01:10] 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 [00:01:38] bidding strategy, rather than a maximize conversion bidding strategy,

John [00:01:41] sometimes you can accidentally shoot yourself in the foot

John [00:01:44] what I mean by that is for example, let's say we're spending $20

John [00:01:50] And Google sees that you have a product list that is varying

John [00:01:53] between $10 and $300 in price

John [00:01:57] Google's gonna say, well, I saw a $20 conversion come in and

John [00:02:01] I've been spending $20 a day

John [00:02:03] Awesome

John [00:02:04] I made a hundred percent Roaz and then it starts to see more, a hundred

John [00:02:08] dollars conversions coming in

John [00:02:10] Okay

John [00:02:11] It's gonna start to go after those people

John [00:02:13] Well now what's your average order value that day

John [00:02:17] If you have five $20 sales and five, $100 sales, 60 ish is where you're gonna land

John [00:02:25] So you're gonna land around the $60 average order value

John [00:02:27] Well, what that do that just gave you a 300% row as automatically

John [00:02:31] Google is trying to get more higher purchase conversions based on the

John [00:02:36] common denominators of those people who are purchasing higher items

John [00:02:41] It's not keyword based again

John [00:02:42] It's person based

John [00:02:44] Are they looking at these products?

John [00:02:45] How long they've been looking at these products?

John [00:02:47] Have they been looking at competitor websites, Google sees everything

John [00:02:50] That's why analytics was invented

John [00:02:51] Google sees where people are going

John [00:02:52] Seeing a tag manager, Google knows exactly where everyone's going

John [00:02:55] All times, all they did is just build a predictability model

John [00:02:58] That's why keywords let's focused on it

John [00:03:00] It's more about the bidding strategy, but what we're doing is we're identifying

John [00:03:05] What is a good value of the conversion when we're talking

John [00:03:07] about maximize conversion value

John [00:03:09] Now let's add a little more complexity to the scenario

John [00:03:12] We have a $200 purchase come in and Google's gonna say, well,

John [00:03:16] start to ignore those $20 sales

John [00:03:19] Let's start going after a hundred and $200 sales

John [00:03:22] Why I'm maximizing the conversion value?

John [00:03:25] I will sacrifice five sales for two big

John [00:03:28] So if it's sacrificing five smaller sales for two bigger sales,

John [00:03:31] yes, you did make more money, but your conversions went down

John [00:03:34] Your conversion rate went down

John [00:03:37] Your volume is possibly going down

John [00:03:40] Your daily ad spend is not being spent

John [00:03:42] Why?

John [00:03:43] Well, because you asked Google to go after a harder objective

John [00:03:48] Google

John [00:03:48] Can you make a sale?

John [00:03:49] Yeah, I'm pretty good at making a sale

John [00:03:51] Okay, cool

John [00:03:52] Ignore all the bad sales stuff

John [00:03:53] And now make me sales and make me big sales

John [00:03:56] That's what maximize conversion value is

John [00:03:59] So if you see that the bigger purchases are less frequent,

John [00:04:03] sometimes you can't scale out of it

John [00:04:05] Sometimes it can, again, situational based, but understand that Google is going

John [00:04:09] to try to get rid of the small purchases that are happening at high frequency

John [00:04:14] Well, that's not that great though, because what you're doing is you're

John [00:04:17] throwing out lower sales that are equalizing the higher sales

John [00:04:23] You have a $20 sale

John [00:04:24] You have a $200 sale

John [00:04:26] Great

John [00:04:27] Now your average order value is a hundred

John [00:04:28] That's good especi for you spending $20 a day

John [00:04:31] That's a five extra return

John [00:04:32] Why would you wanna get rid of, of those $20 sales that are increasing your

John [00:04:35] conversion increase conversion rate?

John [00:04:37] Now we have to talk about this is gonna be a, a different

John [00:04:39] classroom topic, but it's a LTV

John [00:04:42] Those $20 sales are turning into what over time

John [00:04:45] Well, a $20 sale can turn into a $200 sale that can turn into five,

John [00:04:48] $200 sales over the course of a year

John [00:04:49] Would you want to throw them out because you're focusing on only on higher sales

John [00:04:55] If the repeat rate's nothing and they're never gonna buy again then yeah

John [00:04:59] Then maybe you have to focus on those high sales, but it's always gonna be set

John [00:05:02] by the goal of what the client needs

John [00:05:04] If the client needs high amount of sales and at least an average

John [00:05:08] order value, that's decent, don't use maximize conversion value

John [00:05:11] Cause you're gonna toss out the 10 additional sales that could have

John [00:05:14] turned into bigger sales that could have returned later on for the sake of

John [00:05:17] getting fewer high, higher dollar sales

John [00:05:21] Now's a caveat though, to this maximize conversion value is what they call

John [00:05:24] BBB a value-based bidding strategy

John [00:05:27] So value-based bidding strategies allow us to focus on new customer acquisition

John [00:05:33] More often cannot do that

John [00:05:35] Maximize conversions

John [00:05:37] So you can actually take a value-based bidding strategy and say

John [00:05:41] Let me cancel this to see is this sun maximize conversion value

John [00:05:45] You can actually wait, this one's a search

John [00:05:47] Oh, I had it in here before we had search for new customers anyway

John [00:05:51] That was a different campaign

John [00:05:53] Quick side note

John [00:05:54] You're gonna be able to use new customer needs search

John [00:05:56] It's just not, not available there

John [00:05:58] But if you're using a performance max, where you get focused on paying more

John [00:06:01] for customers who spend more, that's something that you can use instead of

John [00:06:05] maximize conversion value is if it was a new customer versus returning customer

John [00:06:09] If the new customers are spending more, it will start to get more

John [00:06:12] newer customers have been using it

John [00:06:13] For a while and that's been helpful, but again, you need high volume

John [00:06:17] You need to have an accurate list

John [00:06:19] You need to upload your list to Google and you need to select it in your settings and

John [00:06:22] conversions for it to actually work well

John [00:06:24] It can't just rely on tag that's too inaccurate

John [00:06:26] So with the maximized conversion value, why would you choose maximize

John [00:06:31] conversion value over maximize convers?

John [00:06:35] Two main points

John [00:06:35] One client doesn't have LTB

John [00:06:38] People are one and done

John [00:06:40] They need to make a high row as good maximize conversion value works

John [00:06:45] Where else does maximize convergence choose better than maximize conversions?

John [00:06:49] Well, maximize conversion value will allow you to go after more newer

John [00:06:52] customers over longer period of time

John [00:06:55] This is not a glitch

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John [00:07:30] And now back to your regularly scheduled program, can't do

John [00:07:34] that maximize conversions

John [00:07:36] So that's good

John [00:07:37] So this is, Hey, I'm okay with getting a little bit less volume

John [00:07:40] If I'm making more profit per sale, you can still scale up

John [00:07:44] maximize conversion value

John [00:07:46] Now let's do TROs Tero S is even harder

John [00:07:51] So maximize conversion value is already harder to maximize convergence

John [00:07:54] because they're asking for bigger sales, but then maximize conversion

John [00:07:57] value with a target return on spend is even harder than maximize conversion

John [00:08:01] value, which is already hard

John [00:08:03] Now we're asking Google spend only the amount of money for a big enough

John [00:08:07] sale to triple my return on that

John [00:08:10] That is a very, very difficult thing to Google, to not only do consistently,

John [00:08:14] but also scale everybody that's been has tried to scale a maximize conversion

John [00:08:20] value BI strategy with target return

John [00:08:23] And that's been knows is pretty much impossible

John [00:08:26] You're gonna hit that point of dimension in returns

John [00:08:28] You will never break out of it just won't happen

John [00:08:31] So the reason why you can't just set a million dollar per day budget with

John [00:08:35] a 500% return on ad spend, just have it scaled to the moon immediately is

John [00:08:39] the reasons why we exist as an agency

John [00:08:42] You can't just set a 500% return, a thousand dollars, a

John [00:08:45] minute, we wouldn't all be here

John [00:08:47] We'd all be selling, socks and making millions cuz cause that'd

John [00:08:50] be something that would be easy

John [00:08:52] So the maximize conversion value with a target return on ad spend does

John [00:08:56] an even harder lock into a finite audience than maximize conversions

John [00:09:00] at a target cost for acquisition

John [00:09:02] Because now we can tell Google is okay, member of our 100 person example

John [00:09:05] Let me take a sip of water here

John [00:09:06] Talk for like 20 minutes

John [00:09:09] Now with the maximize conversion value with the tar row, as it says,

John [00:09:12] okay, you have a hundred people that you think are gonna convert

John [00:09:14] Yes

John [00:09:15] Who's gonna have a high sale

John [00:09:17] Well, that be 70 of those a hundred people

John [00:09:19] Now who's gonna have a high enough sale

John [00:09:21] That's gonna be quick enough then I'm not gonna have to spend a whole bunch

John [00:09:23] of money on that's gonna convert today

John [00:09:25] 30 of those

John [00:09:26] Okay

John [00:09:27] So now we've taken a hundred people, whittled it down to 60, whittle it

John [00:09:29] down to 30 can't scale that, and that's gonna pay faster unless

John [00:09:35] There's high amounts of bottom of the funnel traffic that we know are gonna

John [00:09:38] convert immediately all day long

John [00:09:40] they're growing

John [00:09:42] That's rare

John [00:09:43] So what you're doing is you're locking it into even a harder audience

John [00:09:47] that may convert even less often, but your ROAS is gonna be amazing

John [00:09:51] And that's why we see our daily Aspen go from $500 a day to like, oh my gosh,

John [00:09:56] I turn on maximize conversion value

John [00:09:58] And I say at target TRO as a 300% and Google said, cool, I got 12 people

John [00:10:03] door we whittled it down at 12

John [00:10:05] Once those 12 are gone, then it's done

John [00:10:07] Like you have to restart this whole process

John [00:10:10] Now there's ways to expand that audience though, you can

John [00:10:12] set a target return on spend

John [00:10:14] That's not as aggressive

John [00:10:15] If you need a 300% return, you can set a 200 row as

John [00:10:21] And you could be very profitable at 300%

John [00:10:23] Wait a minute

John [00:10:24] How did you just said you could set a target returned asset of

John [00:10:26] 200% and get a consistent 300%?

John [00:10:29] Yes

John [00:10:30] The reason being is that you're gonna get 200% sales or a 200% row as sale

John [00:10:35] You're also gonna get a 400% row as sale

John [00:10:38] What that average out to 300% you have to take law of averages

John [00:10:42] If I have a little bit of low, a little bit high, I balance out to where I

John [00:10:47] So if you need a campaign, for example, to hit a 300% return on Aspen, sometimes

John [00:10:51] you can nail it by hitting 180 or two 20

John [00:10:53] That's the target return, Aspen

John [00:10:55] this one here I need 150%

John [00:10:57] So I said it a hundred

John [00:10:59] I need to just simply break even I don't even know what this is doing searching

John [00:11:02] I don't even know what this is even doing

John [00:11:03] Let's just see there's too many campaigns here

John [00:11:05] Oh, yeah

John [00:11:06] 68% not even spending this one is the search campaign though, that I've

John [00:11:09] already, this one's an Australian company

John [00:11:11] That's a bad example or an Australian brand

John [00:11:13] But let's do this

John [00:11:14] So where do I have a T CPA on this is the UK one, 118%

John [00:11:19] I don't even know what my bidding strategy is

John [00:11:21] A hundred

John [00:11:21] So I'm asking it to get a hundred is getting 118

John [00:11:24] This last

John [00:11:25] Okay, so it can get higher

John [00:11:26] So it doesn't stop it from going higher

John [00:11:28] It just means get me at least

John [00:11:30] So when you say, get me at least a is or high volume B, is it

John [00:11:34] still falling above that goal?

John [00:11:36] So you set a goal lower than what you need

John [00:11:38] I need one 50

John [00:11:39] I'm getting one 18, cuz I set it at 100 above my average taking into

John [00:11:43] consideration all my campaigns though

John [00:11:45] And I'm getting a 1 71 still above the goal

John [00:11:49] So I'm keeping volume pie

John [00:11:51] That's how in this last 30 days we made 473 K and spent 275 K

John [00:11:56] So that's because I'm above that goal

John [00:11:58] But I have some campaigns that are giving me volume, giving me

John [00:12:01] Roaz or sorry, giving me sales

John [00:12:03] They're not coming at it high enough RO as, so I'm not spending that much

John [00:12:05] money on 'em, but I can get a 96 here and still spend, I don't 2,500

John [00:12:10] bucks cuz I made an additional

John [00:12:12] 59 sales that boosts that 8,000 sale number

John [00:12:14] And I'm still above my average U T CPA to your TRO is to your advantage,

John [00:12:18] but know that that's not skillable and that's going to die off and you're

John [00:12:22] gonna have to restart that process

John [00:12:25] That's how maximize conversion value with a TRO as works

John [00:12:28] It's a very, very difficult bidding strategy for Google to use