What Is Conversion Value?
Also written as conv. value, conversion values, Google Ads conversion value.
Definition
Conversion value is the amount of money you tell Google Ads a conversion is worth. For an ecommerce store, it is normally the order total sent with each sale. A $40 order reports a value of 40, so you see revenue from your ads, not only a count of sales.
Written by Christopher Krassnig, Founder & CEO of ZenoX Media. Written by the ZenoX team from the accounts we run. Definitions are general; the numbers in examples are maths, not client results.
Conversion Value, Explained
A count of conversions treats every sale the same. Value fixes that. A $20 phone case and a $200 pair of boots are one conversion each, but they are very different sales. Once Google can see the money, it can bid harder for bigger orders.
There are two ways to set it. Fixed values give every conversion the same number. That is easy to set up, but it says little about the real sale. Transaction-specific values send a different number with each order, and that is what a store wants. This needs a dynamic value in your tracking code. If that part is missing, Google uses the default value you typed for every conversion.
Check this on day one. Place a test order. See if the value in Google Ads matches the order. A row of identical values usually means the dynamic value never arrived.
Value is also what your ROAS sits on, since ROAS is conversion value divided by ad cost. If the value is wrong, so is the ROAS. It is reported revenue too, not profit, unless you set it up another way.
How We Use It at ZenoX
We send the real order value with every purchase, never a dummy number. Our feed campaigns bid on it, so a wrong value means wrong bids. When Shopify is connected, we compare Google's value with store revenue before we read any ROAS.
Questions People Ask About Conversion Value
What Is the Difference Between a Conversion and Conversion Value?
A conversion is the count: one sale. Conversion value is what that sale was worth. Ten sales is ten conversions, and the value is the total of those ten orders. Value-based bidding needs the second number to tell a small order from a big one.
Why Does Every Sale Show the Same Conversion Value?
Your tracking is likely sending a default or fixed value and not the real order total. Google uses the default you entered when no dynamic value arrives. Fix the tag so it sends the order amount, then place a test order to confirm it.
Related terms
- ConversionA conversion in Google Ads is an action you count as valuable, used to measure your ads and steer your bidding.
- Conversion TrackingConversion tracking is the setup that tells Google Ads when a click turns into a real sale, and how much that sale is worth.
- ROASROAS (return on ad spend) is ad revenue divided by ad spend.
- Maximize Conversion ValueMaximize Conversion Value is a Smart Bidding strategy that uses Google's AI to set bids for the most conversion value from your budget.
- Average Order ValueAverage order value (AOV) is the typical amount a customer spends in one order.
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