Will Google’s Value-Based Bidding (VBB) Work for You?

Will Google’s Value-Based Bidding (VBB) Work for You?

Google's Value-Based Bidding (VBB) promises to revolutionize campaign optimization by focusing on maximizing the value of conversions rather than just the volume. The concept is compelling: why aim for more clicks when you can aim for more valuable clicks? However, the success of VBB hinges on one critical factor—accurate measurement of conversions and their associated values. And this is where things can get tricky.

The Challenge of Accurate Conversion Measurement

For VBB to function optimally, Google needs precise data on how many conversions your ads generate and the value of each conversion. Unfortunately, due to growing concerns about privacy and the rise of consent management, Google often misses a significant portion of this data. In fact, studies show that Google can miss over 60% of conversions because many visitors do not consent to being tracked.

When this happens, Google resorts to "modeled conversions." Essentially, Google uses other signals it has collected to estimate the number and value of the conversions it missed. While this may sound like a clever workaround, it introduces a significant problem: these modeled conversions lack precision, especially regarding their value. This often results in "not set" values in your reports, making it impossible to gauge the true performance of your campaigns.

The Pitfall of Feeding One AI with Another

Even when Google attempts to estimate conversion values, it’s essentially feeding one AI algorithm with the output of another. This creates a feedback loop that can degrade the accuracy of your campaign optimizations over time. Without concrete data, the AI's ability to make informed decisions is compromised, leading to suboptimal bidding strategies and wasted ad spend.

Scoby Analytics: The Solution for Accurate Conversion Measurement

This is where Scoby Analytics comes in. Unlike Google, Scoby Analytics can measure 100% of your audience, ensuring no conversion is missed. Our Anonymous Segments feature allows you to see exactly how many of your visitors and converters from Google consented to sharing their data. If you discover that a significant portion of your Google-sourced visitors did not consent, you might need to reconsider letting Google automatically optimize your campaigns.

Why This Matters

Google’s AI might predict that certain visitors are valuable to your business. However, if these visitors do not consent to sharing their data with Google, any resulting conversions are invisible to Google's algorithm. Without this data, Google’s AI cannot accurately assess whether its predictions were correct, leading to potential inefficiencies and a vicious cycle of inaccurate estimations.

Making Informed Decisions with Scoby Analytics

With Scoby Analytics, you gain full visibility into your audience's consent status, allowing you to make informed decisions about your campaign optimization strategy. By accurately determining how many of your Google-driven visitors consented to data sharing, you can decide whether it's worth using Google’s VBB or if a different optimization strategy would yield better results.

In summary, while Google’s Value-Based Bidding offers a promising approach to campaign optimization, its effectiveness is heavily dependent on accurate conversion data—something that Google may not always be able to provide. Scoby Analytics ensures you have the complete data picture, allowing you to optimize your campaigns with confidence.

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