By Marc Walker, Founder·5 min read·Paid Search
The short version
- Value-based bidding tells Google how much each conversion is worth, not just that it happened.
- It shifts optimisation from lead volume to profitable growth.
- Work back from your average sale to value each step of the funnel.
- Make a clean switch to ROAS and let the algorithm settle.
What is value-based bidding?
Value-based bidding (VBB) lets you tell Google not just which conversions matter, but how much they matter. Instead of treating every lead the same, you assign a value to each outcome based on its real business impact, whether that is the qualification stage, the deal size or predicted lifetime value. It is the difference between optimising for leads and optimising for profitable growth.
Why it matters in 2026
Google’s automation is only as good as the signals you feed it. As Search, Performance Max and YouTube lean ever more on AI, the advertisers who feed the algorithm real value data pull ahead of those who do not.
Better signals in, better results out.
How to set it up
Start by defining your value tiers. Work with your sales or product team to assign real values to each lead type, and make sure the total never exceeds the actual revenue. Take a simple quote funnel: quote start, quote complete, sale, and work back from the sale. If the average sale is worth £500:
- 10% of quote completions become a sale, so a quote complete is worth 10% of £500, which is £50.
- 50% of quote starts become quote completions, so a quote start is worth 50% of £50, which is £25.
Example values passed to Google
Quote start£25
Quote complete£50
Sale£425
If all three fire in the same journey, the total value passed to Google stays capped at £500. You can pass these as static or dynamic conversion values, so Google optimises toward genuine commercial impact rather than raw lead volume. If you want to be more conservative, weight it further toward the final sale: quote start £10, quote complete £40, sale £450.
Common mistakes to avoid
- Flat values for every lead. Treating every enquiry as equal hides the leads that actually make money.
- Mismatched settings. A gap between campaign goals and conversion setup sends Google misleading signals.
- Inaccurate calculations. Small spreadsheet errors compound quickly into poor bidding decisions.
- Dragging out the switch. A piecemeal move to ROAS confuses the algorithm; make a clear, timely shift to lock in the learning.
The Low Digital VBB ladder
This is the framework we use to move an account onto value-based bidding:
1
Track micro and macro conversions
Capture both small interactions and key revenue events so Google sees the full funnel.
2
Assign monetary values
Quantify the impact of each action so bids prioritise the highest-return opportunities.
3
Feed values via CRM, GTM or API
Automate value imports so the data stays accurate and up to date.
4
Switch from CPA to target ROAS
Move from volume-focused to value-focused bidding to align spend with profit.
5
Commit to the shift
Make the change decisively and let the algorithm stabilise before tweaking.
Advanced tips
- Layer in first-party and purchaser audiences to sharpen your value signals.
- Audit your attribution windows so lookback periods match your real sales cycles.
- Test the granularity of your value tiers to find the sweet spot between clarity and noise.
- Time the transition for a low-volume period to give the algorithm clean data.