Why counts are not enough
Optimizing to conversion count treats a $50 order and a $5,000 order as equal. Passing a value with each conversion lets Smart Bidding chase the high-value ones. Without values, Target ROAS and Maximize conversion value have nothing to work with.
Static vs dynamic values
Ecommerce usually passes the real transaction value dynamically. Lead-gen assigns proxy values to stages, a raw lead worth less than a qualified one, so bidding learns to prefer quality. Feeding values through offline conversion import is how you make a lead-gen account optimize for revenue, not form fills.
What the platforms actually do with the value
In Google Ads, only conversion actions set as primary feed the Conversions and Conv. value columns and bidding; secondary actions are observation only and show in All conversions, unless they sit in a custom goal. If two primary actions share a value, bidding can't tell them apart: why Smart Bidding can't tell a demo from a signup. Target ROAS needs values set before you can apply it, and conversion value rules let you raise or lower values by location, device or audience so Smart Bidding optimizes to what those users are really worth. On Meta, the value and currency parameters on the purchase event drive ROAS reporting and value optimization; Meta says ROAS goal works best with 50 to 100 conversions per ad set per week.
The mistake we see most is a value that is quietly wrong: a hard-coded or default value instead of the real order total, a value that includes tax and shipping in one place and not another, or a secondary action like add-to-cart counted as primary so its value inflates ROAS. Bidding then chases the wrong number with full confidence. Before we move any account to value-based bidding, we reconcile reported conversion value against the backend or CRM for the same period, and we only switch once the two agree closely.
Common questions
What is conversion value in Google Ads?
It is the monetary amount attached to a conversion so bidding can optimize for revenue instead of conversion count. Ecommerce passes real order values; lead-gen assigns proxy values by lead quality.
Do you need conversion values for Target ROAS?
Yes. Target ROAS and Maximize conversion value optimize against the values you send, so without meaningful conversion values they cannot function properly.
How is conversion value calculated in Google Ads?
Google Ads records the value your tag or import sends with each conversion. You can send a different value per conversion (for example the real order total, added to the tag dynamically) or the same fixed value every time. If a dynamic value is not passed, the default value set on the conversion action is used for every conversion. Conversion value rules can then multiply values by location, device or audience.
What is a good conversion value per cost in Google Ads?
Conv. value / cost is your ROAS expressed as a ratio. A good figure is one above your break-even ROAS, which is set by your margin: a business with 40% gross margin needs at least 2.5 (250%) to cover the cost of goods before any other cost. There is no universal benchmark.
How does Meta use purchase value?
Meta reads the value and currency parameters on your Pixel or Conversions API purchase events. The standard event code defaults to USD 0.00, so the value must be set to the real amount. That value powers ROAS reporting and the Maximize value of conversions performance goal, including ROAS goal bidding.