What are two types of value-based Smart Bidding strategies?

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Lata Bala

value-based Smart Bidding

When I was preparing for the Google Ads Search Certification exam (which I proudly passed with a 97% score!), one question stood out because it highlighted a huge mindset shift: you shouldn’t just count conversions—you should count value.

That’s where value-based Smart Bidding comes in. In this post, I’ll break down the correct answer to this question, explain what value-based bidding really means, why the wrong options don’t work, and how you can apply it to real campaigns. Let’s dive in!

Question

What are two types of value-based Smart Bidding strategies?

  • Maximize conversion value with target ROAS
  • Manual CPC
  • Target impression share
  • Maximize conversion value

Here are two correct answers:

✅ Maximize conversion value with target ROAS
✅ Maximize conversion value

Why These Two Are Correct

1. Maximize Conversion Value

This strategy tells Google to get the most conversion value (like sales revenue) possible with your budget.

2. Maximize Conversion Value with Target ROAS

This is similar, but now you set a goal like “I want $5 back for every $1 I spend.”

  • Google tries to hit that goal while bidding.
  • Great for ROI-focused campaigns.
  • Example: If your target ROAS is 500%, you want $5 return for every $1 ad spend.

These are Smart Bidding strategies, meaning Google adjusts bids automatically based on real-time signals (device, location, time, etc.) to get the most valuable results.

Why the Other Options Are Wrong

❌ Manual CPC

  • This is not Smart Bidding.
  • You manually set bids and have full control.
  • No automation or value tracking is involved.

❌ Target Impression Share

  • This is Smart Bidding, but it’s designed for visibility, not value.
  • It focuses on how often your ad appears, not what your conversions are worth.
  • Used for brand awareness or keyword dominance.
Bar chart comparing value-based and non-value-based bidding strategies in Google Ads, including Target ROAS, Maximize Conversion Value, Manual CPC, and Target Impression Share
This chart illustrates how Maximize Conversion Value and Target ROAS stand out as value-based Smart Bidding strategies compared to visibility or manual-focused methods.

Comparison Table: Bidding Strategies Overview

Bidding StrategySmart BiddingValue-BasedGoal
Maximize Conversion Value✅ Yes✅ YesGet the most value within budget
Max. Conv. Value w/ Target ROAS✅ Yes✅ YesValue with a return target
Manual CPC❌ No❌ NoClick control
Target Impression Share✅ Yes❌ NoMaximize visibility

Real-Life Example:

Let’s say Tina owns an online boutique. She sells handbags ranging from $40 to $300. Previously, she ran a campaign using Maximize Conversions, and got 20 sales.

But when she checked, most of those were $40 bags. Her revenue wasn’t as high as she expected.

She switches to Maximize Conversion Value, and later to Target ROAS (400%). Google now prioritizes the higher-priced handbags. Even if she gets fewer sales, her total revenue jumps by 35%.

Value-based bidding shifted her strategy from quantity to profitability.

FAQs:

Q1: What’s the difference between value-based and volume-based bidding?
Value-based = aims for more revenue.
Volume-based = aims for more conversions.

Q2: Can I use these strategies with any campaign?
Only if you have conversion tracking with value set up. E-commerce stores are a great fit.

Q3: What is a good ROAS to target?
It depends on your profit margins. Start with 300% and adjust based on performance.

Q4: Are these strategies automated?
Yes! Google uses machine learning to adjust bids in real time based on thousands of signals.

Conclusion:

Value-based Smart Bidding is the future of profitable advertising. If you care about revenue, not just leads, use:

  • ✅ Maximize conversion value for growth-focused campaigns
  • ✅ Target ROAS when you want efficiency and return

Stop just chasing conversions. Start chasing value.

Now, if you are ready, you can take the Google Skillshop test for the Google Ads Display Exam. Want more real exam questions with easy answers like this? Follow along — I’ll be breaking down more Google Ads Display Measurement Certification Free examples in the next posts.