How does value-based bidding work?

Value-based bidding is a Smart Bidding approach that uses machine learning to optimize for higher conversion value by prioritizing actions that best support business goals.

• Value-based bidding is a Smart Bidding strategy that uses machine learning to drive the highest click-through rate possible, by bidding for conversions that drive business objectives.
• Value-based bidding is a Smart Bidding strategy that uses machine learning to drive the highest target impression share possible, by bidding for conversions that drive business objectives.
• Value-based bidding is a Smart Bidding strategy that uses machine learning to drive the highest impressions possible, by bidding for conversions that drive business objectives.
• Value-based bidding is a Smart Bidding strategy that uses machine learning to drive the highest conversion value possible, by bidding for conversions that drive business objectives.

Explanation:
Value-based bidding goes beyond increasing clicks or conversion volume—it focuses on driving conversions that deliver the greatest business impact. By providing Google’s AI with strong, reliable data, you help it place more informed bids. Using machine learning, the system analyzes billions of signal combinations to identify and target high-value conversions. This approach supports both fixed and dynamic values, such as profit margins or predicted lifetime value, allowing campaigns to be optimized around what truly matters to your business.