Jump to content
1-844-245-2553* Call for sign up help Mon-Fri, 9am-9pm ET Contact Us Sign in Start now

Calculate conversion values to bid effectively

Bidding towards conversion value is a great way to reach your most valuable customers and maximize ROI. Generating leads involves measuring several on-and-offline events in your conversion funnel, making it difficult to know which to optimize for. Use this tool to identify the events that you should bid towards.

Calculator Conversion

01. What you’ll need to get started

Some conversions are worth more to your business than others. Mapping out your lead-to-sale journey

Lead-to-sale journey

The events in your conversion funnel that qualify inbound leads into paying customers.

lead-to-sale journey can help you identify the key stages in your funnel and determine the average values

Average value

The dollar amount assigned to a conversion action. Capture separate values for different conversion actions to compare (e.g. web form fill vs. phone call).

average values of your conversion actions,

Conversion action

A specific step taken by a customer that provides value to your business.

conversion actions so you can effectively use a value-based bidding

Value-based bidding

A Smart Bidding strategy that optimizes for conversion value or return on ad spend (ROAS) to help advertisers reach their business goals (e.g. revenue, profit, lifetime value).

value-based bidding strategy.

  • First, CONSIDER:

  • What are the highest-priority stages in your sales cycle? (Typically 3-6 actions)

  • Do you have conversion tracking set up?

  • Then, get your numbers handy:

  • What is the average revenue you receive from the last stage in your lead-to-sale journey? (e.g. sale, policy signed, subscription)

  • What is the conversion rate

    Conversion rate

    The rate at which customers move from one funnel stage to the next in your lead-to-sale journey.

    between each stage in your lead-to-sale journey?
This calculator uses average values but we recommend transaction-specific values for a more accurate sense of ROI. If your goal is to generate leads

Leads

Potential customers of your product or service.

 , it’s best to import your offline conversions and bid towards an action closest to the final sale.

Select an industry to see an example journey below

Viewing: General

  • General
  • Education
  • Travel
  • Car Sales
  • Finance
  • Real Estate
  • Healthcare
  • B2B Software
  • Mortgages
  • Law firms
  • Job Recruiting
  • Insurance
  • Loans

  • Lead

  • x% conversion rate

  • Marketing Qualified Lead

  • x% conversion rate

  • Sales Qualified Lead

  • x% conversion rate

  • Fourth stage

  • x% conversion rate

  • Final Sale$X value per sale

02. Calculate the value of your conversion action

Enter the key stages in your lead-to-sale journey that takes your customer from a lead to a sale. We’ll do the math at each step to show you the most valuable conversion actions to bid on in Google Ads.

To view the full experience, please go to desktop.

  • Stage 1 (Conversion Action)

  • Conversion Rate %

  • Stage 2

  • Conversion Rate %

  • Stage 3

The output does not constitute legal advice and should never be positioned as binding recommendation.

The customer should seek its own legal advice with any questions about how to comply with legal obligations.

Start by entering the conversion action you are tracking in Google Ads that creates a lead.

e.g: info request, online application, visit scheduled

What happens next in the process after [FIRSTINPUT]?

Remember to consider key stages of your lead-to-sale journey

What percentage of people make it from [FIRSTINPUT] to [SECONDINPUT]?

Not sure? Enter your best guess and update later.

Are there any more stages in your lead-to-sale journey that you are tracking? And finally, what is the average dollar value of a customer completing [LASTINPUT]?

  • Stage 2

  • Conversion Rate %

    • Average conversion value ($) Average conversion value = $ % Conversion Rate

  • Your average conversion value for [FIRSTINPUT] is

    Review this guide for next steps on how to add your $[PRICE] conversion value to your account to use a value-based bidding strategy.

    Remember, if you are using average values, you will need multiple conversion actions, like [FIRSTINPUT], with different values (preferably from different lead-to-sale journeys) to effectively deploy a value-based bidding strategy. If you are using transaction-specific values (recommended), you will not need this calculator and will only need to use one conversion action.

    Note: For best results, consider bidding to one stage in a given lead-to-sale journey at a time. Consider volume and business goals when picking a stage to bid to.

    Print or download this output as a PDF to reference later or use as a discussion point with your account manager, if applicable.

    • $

    Removing this action will delete all inputs below it

    Additional resources

    • Implementation & Next Steps

      BEST PRACTICE GUIDE

      Implementation & Next Steps

      A guide to help you assign values to your conversion actions in Google Ads and use a value-based bidding strategy.

      Read the guide

    • HELP CENTER ARTICLE

      Conversion Value Basics

      Learn the benefits of using conversion values as part of your digital ad strategy and the types of values available.

      Learn More

    • HELP CENTER ARTICLE

      Target ROAS

      Consider this bid strategy if your goal is to maximize your conversion value with a specific target return.

      Learn More

    • HELP CENTER ARTICLE

      Maximize Conversion Value

      Consider this bid strategy if your goal is to generate as much conversion value within your daily budget.

      Learn More

    • WHITEPAPER | ADVANCED RESOURCE

      Setting Smarter Search Bids

      Understand fully-automated bidding and the benefits of a value-based bidding strategy.

      Learn how it works