While traditional bidding strategies focus on maximising conversion volume, value-based bidding (VBB) takes it a step further by optimising for the profitability of each conversion.

According to Google, lead gen advertisers who implement value-based bidding see an average 14% increase in conversion value at a similar return on ad spend (ROAS). 

So if you want a similar profitability boost, what are the essential best practices to follow in 2025 (and beyond)?

To help marketers adopt and make the most of value-based bidding, we spoke with leading PPC expert and Optmyzr Brand Evangelist Navah Hopkins about all things VBB in a recent webinar.

Named as one of the top 25 most influential voices in PPC, Navah also co-founded the Paid Search Association, a group dedicated to empowering the next generation of paid media practitioners, as well as serving as a resource for the wider marketing community to learn from.

Throughout the session, Navah shared invaluable insights on how to structure VBB campaigns effectively, the common pitfalls to avoid, how to fine-tune your bidding strategy for optimal results, and a whole lot more. 

Watch the full session with Navah here, or keep reading for the key takeaways: 

Timestamps: 

00:00 - Intro

05:01 - (icebreaker poll) will Meta’s relaxation of content moderation hurt ad businesses?

09:21 - Full agenda runthrough

11:40 - The fundamentals of value-based bidding (VBB)

16:44 - Optmyzr’s 4-point framework for implementing VBB

18:21 - Sharing better data: Online conversions

25:36 - Sharing better data: Offline conversions

29:19 - Tools to automate tracking and connection of lead data

31:15 - The importance of assigning clear conversion values

36:02 - Conversion values best practices

40:00 - Choosing the right goal / conversion action

45:53 - Build rules for conversion values

48:50 - Value-based bidding strategies

51:12 - Structuring accounts for optimal performance

54:36 - Common pitfalls of value-based bidding

57:26 - Improving traffic quality

1:00:20 - Live audience Q&A

1:11:35 - Final thoughts / useful documents

What Is value-based bidding?

At its core, value-based bidding allows advertisers to adjust bids based on the potential revenue a lead is likely to generate rather than just focusing on cost-per-lead (CPL). As Exit Five succinctly puts it:

"A $50 lead that never converts isn’t actually cheaper than a $300 lead that closes."

This strategy shifts the focus from raw conversion volume to actual business outcomes, ensuring that budgets are spent on leads with the highest potential value.

Value-based bidding: Optmyzr’s four-step strategy

During the session, Navah highlighted and discussed the four-point framework from Optmyzr that businesses should follow to implement value-based bidding effectively:

1. Share better data with Google Ads

Feeding accurate and meaningful conversion data into Google Ads is the foundation of an effective VBB strategy. This includes both online and offline conversions:

• Online conversions: Ensure your website’s conversion tracking is correctly set up. Google’s new codeless conversion tracking can help advertisers track events without manual coding.
• Offline conversions: Many high-value B2B deals close offline. Use tools like Zapier or CRM integrations (Salesforce, HubSpot) to import closed deal data back into Google Ads.
• Enhanced conversions for leads: This feature allows you to track leads from the first interaction through to conversion by hashing and securely matching user-provided data.

Navah’s Tip: “If you’re seeing a lot of junk leads, that’s a sign you need to integrate offline conversion tracking and send quality signals back to Google.”

2. Assign clear and meaningful conversion values

Google Ads allows you to assign different values to conversion actions. But how do you decide what values to use?

Some common approaches include:

• Profit margin-based values – Assign a value based on expected profit per lead.
• Customer lifetime value (CLV) – Estimate the long-term revenue from a customer.
• Proxy values – If exact revenue data isn’t available, assign values based on historical conversion trends and engagement levels.

Navah’s Tip: “If you don’t have perfect data, start with proxy values based on your lowest customer value and refine over time.”

3. Build conversion value rules

Not all conversions are equal, and different channels, devices, or audiences may deliver leads with varying levels of value. Google Ads' Conversion Value Rules allow you to adjust values dynamically based on:

• Device type: If mobile leads tend to convert at a higher rate, you can assign them a higher value.
• Geographic location: Adjust values based on conversion likelihood in different regions.
• Lead source: Calls vs. form fills – if one is more valuable, assign a higher weight.

Navah’s Tip: “If you know that phone leads close at a 50% rate, while form fills close at 35%, assign phone leads a higher value.”

4. Choose the right smart bidding strategy

When using VBB, you have two main bidding options:

• Maximise conversion value: Ideal if you want Google to bid dynamically based on expected lead value.
• Maximise conversion value with Target ROAS (tROAS): If you have clear profit targets, you can set a return-on-ad-spend goal to ensure profitability.

Navah emphasised that for most lead gen businesses, tROAS is the better approach—but only if conversion values are set correctly.

Navah’s Tip: “Start with Maximise Conversion Value to gather data. Once you have enough conversion data, layer in a tROAS target to refine efficiency.”

Value based bidding: Common pitfalls

While VBB is a powerful strategy, there are common mistakes that can limit its effectiveness:

1. Not meeting the conversion threshold – Google’s official recommendation is at least 15 conversions per month, but Navah’s research suggests 50 is the true sweet spot for success.

2. Analysing performance too soon – The learning phase skews results. Wait at least 2-4 weeks before making performance judgments.

3. Overcomplicating conversion actions – Limit yourself to 3-5 key conversion actions to avoid confusing Google’s algorithm.

4. Using static conversion values for dynamic transactions – If deals vary in value, use CRM data to dynamically adjust conversion values.

5. Poor data hygiene in CRMs – Ensure your sales team isn’t duplicating or misclassifying leads, which can send inaccurate data back to Google.

Final thoughts & key takeaways

Navah closed the webinar with an important reminder of which all marketers should take note:

“Give yourself grace. Implementing value-based bidding takes time, and there’s no one-size-fits-all approach. The key is continuous refinement.”

Key takeaways

• Ensure you have strong conversion tracking in place, including offline data. 
• Assign meaningful conversion values based on revenue, CLV, or probability of closing. 
• Use Conversion Value Rules to fine-tune your bidding. 
• Choose between Maximise Conversion Value or tROAS based on your goals. 
• Avoid common pitfalls by waiting for the learning phase to finish before making changes.

By adopting value-based bidding and optimizing for value rather than volume, marketers can move beyond basic cost-per-lead optimization and drive higher-quality leads that generate real business impact.

Big thanks to Navah for taking part in the webinar, and for dropping so many knowledge bombs marketers can action to improve their paid media efforts. Watch the full webinar for a more in-depth look on everything value-based bidding, along with a few extra tips and tricks to help you adopt a more value-driven approach. 

For more from Navah, check out her episode of the Paid Media Lab podcast, where she went in-depth on Dynamic Search Ads—and their hidden power as one of the best competitor research tools out there. 

And finally, if you’re not already, make sure you follow Navah on LinkedIn for regular in-depth PPC insights and actionable strategies, along with her takes on the latest PPC news.

Want to see how much invalid traffic is impacting your lead gen campaigns? Request a free traffic audit from Lunio to combat wasted ad spend and focus on high-value conversions.

Additional resources:

• Get a 14 day Lunio traffic audit‍
• ‍Follow Navah on LinkedIn‍
• ‍Exit Five - $300 vs $50 Leads
• ‍‍Optmyzr - 4 Point Framework for VBB‍
• ‍Codeless Conversion Tracking - Thomas Eccel‍
• ‍WhatConverts - Crash Course‍
• ‍Conversion Value Calculator Tool - Google‍
• ‍Ginny Marvin - Value-Based Bidding Strategy‍
• ‍Navah Hokins - Podcast Episode‍
• ‍Scott Carruthers - Podcast Episode‍
• ‍Optimize Value Rules Tool - Optmyzr‍
• ‍How to Use Google’s Bid Strategy Report‍
• ‍Campaign Experiments Tool - Optmyzr‍‍
• Financial Services IVT Report - Lunio