Google has recently clarified the **eligibility requirements** for value-based bidding strategies within Demand Generation campaigns, setting specific conversion thresholds that must be met to unlock advanced bidding options like **maximize conversion value** or **target ROAS**. This clarification aims to enhance the effectiveness of machine learning algorithms while ensuring advertisers can achieve their campaign goals.
**Georgi Zayakov**, Senior Consultant at Hutter Consult, provided insights on this development in a recent LinkedIn post. He noted that “your campaign must have recorded at least **50 conversions with value** within the past **35 days**,” and crucially, **10 of those conversions must occur within the last week**.
Summary
Who: Google and advertisers utilizing Demand Gen campaigns seeking advanced bidding optimization, with insights from Georgi Zayakov.
What: Clear eligibility thresholds for value-based bidding strategies requiring specific conversion volumes before accessing advanced bidding options.
When: These requirements are currently in effect and have been highlighted in recent industry discussions and Google’s Help Center documentation.
Where: Google Ads platform, specifically impacting Demand Gen campaigns across platforms like **YouTube**, **Discover**, and **Gmail**.
Why: To ensure that sufficient conversion data is available for machine learning algorithms to optimize effectively for value-based objectives while maintaining robust campaign performance standards.
Qualification Paths
Advertisers have two **qualification pathways** to meet these thresholds:
- The **first option** requires campaigns to accumulate at least **50 conversions** with value over the past **35 days**, including **10 conversions** within the last **7 days**.
- The **second option** demands that accounts generate a total of **100 conversions with value** across all Demand Gen campaigns within the same 35-day timeframe.
It’s essential to note that only conversions with **meaningful value** count toward these eligibility criteria. Google’s documentation succinctly states, “Conversions with value means that a conversion with a value of **0** or a **negative value** wouldn’t contribute to the eligibility criteria.”
Understanding Value-Based Bidding Strategies
Value-based bidding includes two distinct **optimization strategies**:
- **Maximize Conversion Value Bidding**: This approach allows advertisers to maximize total conversion value within their specified budgets.
- **Target ROAS Bidding**: Here, advertisers can set specific Return on Ad Spend (ROAS) goals based on their sales revenue.
These strategies present advanced options compared to standard conversion-focused methodologies. Initial campaign setup mandates proceeding with either **Maximize Conversions** or **Target CPA** bidding strategies, allowing the necessary conversion data to accumulate for machine learning optimization.
Implementation Guidelines
Campaign stability is crucial for a successful transition to value-based bidding. Google’s documentation emphasizes the importance of maintaining a **stable environment** during the first **14 days** of campaign operations. This stability is essential to ensure that Google’s AI can effectively train for optimal performance.
For target ROAS, setting an initial target **20% lower** than historical averages is recommended. This approach aids automated systems in establishing baseline performance before pursuing more aggressive return targets.
Budget Considerations
Budget strategies significantly influence the effectiveness of bidding methods:
- For **conversion-based bidding**, Google encourages setting daily budgets greater than **20 times the expected CPA**.
- For **value-based bidding**, adjustments should meet or exceed **20 times the expected average conversion value** divided by target ROAS.
Moreover, technical implementation requires precise conversion tracking. Advertisers should utilize “Google Ads conversion tracking with conversion values” and explore “tracking transaction-specific conversion values” to achieve optimal results.
Performance Evaluation
Evaluating performance relies on specialized reporting tools. Advertisers should leverage the **bid strategy report** to analyze performance, allowing sufficient time—at least **three weeks**—for data collection to yield reliable insights.
The value-based bidding feature dovetails with Google’s goal to enhance advertising capabilities across its network. Demand Gen campaigns are crafted to generate demand and drive business results across visually engaging platforms, including **YouTube**, **Discover**, and **Gmail**. Learn more about the intricacies of Demand Gen campaigns in this detailed analysis: Understanding Demand Gen in Google Ads.
Conversion Window Configuration
Although **conversion window settings** can be flexible, a consistent approach during testing phases is vital. The documentation recommends setting your conversion window and refraining from changes during the campaign testing phase unless absolutely necessary.
Alternative Approaches
For organizations with **non-traditional conversion patterns**, innovative solutions exist. Zayakov advised that businesses could “**attribute values to softer events**” to better comply with qualification metrics, providing a workaround for those who may not generate conventional revenue conversions.
Addressing Fundamental Challenges
The eligibility thresholds address significant challenges faced in automated bidding optimization. While traditional conversion-based strategies may function with minimal data, value-based optimization necessitates a robust history of conversion value to identify meaningful patterns.
The machine learning infrastructure, supported by Google’s **Smart Bidding** technology, incorporates models trained on historical conversion probability data, evaluating contextual factors during the auction process to determine optimal bid amounts for achieving specific value targets.
Planning and Strategy
Effective budget allocation is critical for meeting these threshold requirements efficiently. Campaigns that operate with insufficient budgets may find accumulating the required conversion volumes challenging, hindering their access to advanced bidding strategies.
As campaigns transition to value-based bidding, managers should carefully assess existing conversion data. Accounts lacking sufficient history should focus on building up qualifying conversions before leveraging advanced options.
Distinction in Qualification
The disparity between **campaign-level** and **account-level qualification** offers flexibility for varying organizational structures. Individual campaigns can qualify with **50 conversions** including **10 recent conversions**, while overall account performance can be aggregated across multiple Demand Gen campaigns.
Value Analysis and Reporting
Performance measurement should extend beyond traditional metrics to incorporate **conversion value analysis**. The bid strategy report helps advertisers evaluate the relationship between generated value and advertising expenditure, providing critical insights for ongoing optimization efforts.
This clarity in requirements aligns with Google’s recent expansion of Demand Gen capabilities, including integration with **Display & Video 360** for enhanced targeting options. As the Demand Gen platform evolves, it positions itself as a powerful alternative to traditional social media advertising, emphasizing visual storytelling across Google’s extensive network.
Advanced bidding options reflect Google’s commitment to sophisticated optimization capabilities. The recent introduction of Target CPC bidding for Demand Gen campaigns expands the array of tools available beyond traditional conversion-focused strategies.
In summary, these clarified requirements provide invaluable guidance for the marketing community in campaign planning and optimization. By understanding the threshold requirements, advertisers can optimize resource allocation and refine their timelines, ensuring they can effectively access advanced bidding capabilities within Demand Gen campaigns.
In navigating these new regulations, professionals can craft comprehensive campaign strategies that consider necessary data accumulation phases. This understanding proves essential for forecasting performance across extended timelines, ensuring a competitive edge in the digital advertising landscape.
Timeline
It’s imperative for marketers and advertisers to stay abreast of these updates to position themselves strategically as they adapt to the evolving advertising landscape.
