How does the “ maximize conversions” bidding strategy work?

Whether you’re looking just for an Google Ads measurement exam answer, or want to understand how Maximize Conversions bidding strategy work, this post will cover it in details.

There are dozens of different topics that every aspiring marketer must understand before they start creating effective campaigns for their brand. Google Ads has plenty of resources and strategies that help website owners, data analysts, and marketers reach their goals, and today, we’ll help you understand one of the most important ones.

Today, we’ll cover the ‘Maximize Conversions’ bidding strategy when using Google Ads, which not only is an essential factor in any campaign but is also one of the questions you will find in the Google Ads Measurement Assessment Exam.

Let’s get started!

How Does the Maximize Conversions Bidding Strategy Work? | The Correct Answer

When doing the measurement assessment from Google Ads, you’ll get the four following options:

It uses machine learning to capture as many conversions as possible within a daily budget.
It aims to achieve an average return on ad spend (ROAS) equal to a desired target.
It automatically limits conversions that don’t align with a desired bidding strategy.
It’s the safest bidding strategy for all business types to optimize their bidding.

The correct answer, in this case, is: “It uses machine learning to capture as many conversions as possible within a daily budget.”

👉 Get access to all of the Google Ads Measurement Assessment Answers for 2023, and stay on track with the latest updates regarding this exam to get certified in minutes.

On the other hand, if you want to learn more about the ‘Maximize Conversions’ bidding strategy in general, keep reading!

What Can You Expect from This Particular Bidding Strategy?

Let’s expand upon the answer we just gave you in the previous section. Generally speaking, this strategy will automatically set bids to help you get the most conversions possible for your campaign.

Thanks to Google’s machine learning technology, it will optimize your bids automatically. Now, the great thing about this strategy is that it will optimize your bids based on:

Where people search
When people search
How people search

Some of the contextual signs that the strategy considers include:

Device
Browser
Operating System
Location
Remarketing List

You have two different options when it comes to using the Maximize Conversions strategy: Setting it up with or without a Target CPA set.

If you set them up without a Target CPA set, Google will spend your budget to Maximize Conversions for a particular campaign. On the other hand, if you have a Target CPA set, Google will aim to get you as many conversions as possible at the target cost-per-action.

How the Strategy Works

The Maximize Conversions bidding strategy will use historical information about your campaign, and it will also evaluate any contextual signals available at auction time. Thanks to that approach, you will be able to automatically find an optimal bid for your particular ad.

In a sense, you will be able to find the cheapest conversions possible according to your budget. Now, there are a couple of things you must consider before you switch to the Maximize Conversions strategy:

Maximize Conversions will try to spend your average daily budget entirely, so you should always check your daily budget amount if you want to prevent spending more money without wanting to.
Understanding your ROI goals will help you know how to set up your Maximize Conversions strategy. The bidding strategies suitable to be set up alongside Maximize Conversions include Target CPA/CPI/ROAS.

How Can You Get Started?

Creating a ‘Maximize Conversions’ strategy is straightforward for most people. Overall, you have the following options:

Create the strategy alongside a new campaign.
Adjust your current campaign’s settings.
Create from the Shared Library – Bid Strategies page.

When you’re in the Campaign Settings, you must go into the Bidding section, click on “Change Bid Strategy,” and then “Select a Bid Strategy Directly.” There, you can choose “Maximize Conversions and save your settings.

If you want, you can also set a Target CPA.

Is Maximize Conversions Appropriate for You?

Maximize Conversions is suitable for those who already have conversion data to feed the learning machine. Those who have from 15 to 30 conversions in the last 30 days may benefit from switching to Maximize Conversions, as the algorithm will have enough data to learn.

On the other hand, this strategy isn’t recommended for those who are just starting.

Let’s take a look at the difference between this and other similar bidding strategies. Remember that Maximize Conversions will try to get you as many conversions as it can.

Target CPA: It allows people to tell Google the average amount of money they’re willing to pay for each conversion.
Maximize Conversion Value: It aims to get you as much conversion value as possible based on your budget.
Maximize Clicks: It aims to get you as many clicks as possible based on your current budget.
Manual CPC: You can manually set bids for each of your products and keywords.

Bottom Line - Why Is This Strategy Important?

Maximize Conversions can be a great ally for those who want to get as many conversions as possible, but keep in mind that this strategy aims to spend your entire budget, so you must ensure you assess your goals and daily budget to avoid spending more and getting fewer conversions than expected.