The Importance of Setting Up Google Ads Conversion Values

Getting the most from Google Ads requires more than just setting up basic campaigns. With rising ad costs and an increasingly sophisticated AI-driven algorithm, Google Ads has evolved - and so must your approach. Many businesses are still relying on traditional tactics, like manually setting bid adjustments or targeting broad audiences, which can quickly drain your budget and deliver poor results. That’s where Google’s AI, and more specifically the Maximise Conversion Value option, comes into play, and with this, Google Ads conversion values are so very important.

At WebStudio, we use AI-powered strategies to achieve better results for our clients, especially those in high-ticket industries where each lead has a significant value. But to take advantage of this tool effectively, it’s essential to assign values to each conversion type—allowing Google’s AI to make smarter decisions and prioritise the conversions that matter most to your business.

In digital marketing, a conversion is any action a visitor takes on your website that aligns with your business goals. This could be signing up for a newsletter, downloading a brochure, or submitting a “Request a Quote” form. Each of these actions has a different level of importance, and assigning a value to them allows Google to distinguish between less impactful conversions and the ones that truly move your business forward.

The idea here is simple: by setting up conversion values, we help Google understand which actions drive real business impact and which are less significant. For instance, while a newsletter subscription is useful, it doesn’t hold the same weight as a direct enquiry from a potential client. By providing these values, Google’s algorithm can prioritise the higher-value actions, helping you get the most relevant traffic for your budget.

When we set values for conversions, we can activate Google’s Maximise Conversion Value option. This feature is particularly useful for businesses with high-ticket products or services - like many of our WebStudio clients. While e-commerce sites with smaller transactions benefit from simply maximising conversions or usign theROAS system, businesses that rely on fewer, more valuable leads benefit from maximising the value of each conversion.

For instance, rather than targeting a broad set of clicks, Google can focus on users who are more likely to complete higher-value actions. It’s about quality over quantity - focusing on prospects that are more likely to turn into customers with a higher lifetime value. This strategy is perfect for companies where each lead has a large impact, making every click truly count.

Not every business feels comfortable putting exact monetary figures on each conversion type, often out of concern that Google might see this as justification for increasing click costs. At WebStudio, we take a practical approach by assigning relative values based on the importance of each action to your business. This is what we call our Bronze, Silver, and Gold approach:

• Bronze Conversions: Lower-value actions like newsletter sign-ups, which we might value at 10. These actions show interest but are more top-of-funnel.
• Silver Conversions: Mid-level actions like brochure or price list downloads, valued at around 100. These show stronger interest and intent.
• Gold Conversions: High-value actions, like phone calls or form submissions, valued at 500. These are the most valuable actions, indicating a potential sale or serious enquiry.

This approach gives us a flexible way to guide Google without exact £pound amounts, while still showing the algorithm the relative value of different actions. We will work with you to get these values right and overtime they become accurate relative to each other.

To make this work, we set up conversion tracking using Google Tag Manager. This allows us to pass conversion values directly to Google Ads, letting Google’s AI understand which leads are worth more to your business. Over time, the algorithm learns which types of actions drive higher value and adjusts its targeting and bidding strategies accordingly.

This setup is crucial for today’s Google Ads management. By providing Google’s algorithm with the right data, we’re giving it the tools it needs to prioritise the actions that help you achieve your goals - whether that’s generating high-quality leads or increasing requests for quotes.

A modern Google Ads manager’s role has shifted from manually tweaking bids and ad groups to strategically feeding Google’s algorithm with meaningful data. When we set up conversion values and use tools like Maximise Conversion Value, we’re empowering Google to prioritise what matters most to your business. The result? Better-qualified traffic, increased conversion value, and a higher ROI for your campaigns.

With AI taking care of the details, our job is to ensure that Google’s AI has the right information - conversion values that reflect your business priorities, so it can bring in the leads that truly make a difference.

Assigning values to conversions is a foundational step in making the most of Google Ads AI capabilities. By setting these values and using Maximise Conversion Value, you’re allowing Google’s AI to focus on the prospects that matter most, turning high-quality clicks into real opportunities for growth.