Google Ads Conversion Value Rules: The Hidden Lever for Profitability (2024)

"A lead is a lead." Wrong.

A lead from a mobile device might convert at 5%. A lead from a desktop might convert at 20%. A customer from London might have a Lifetime Value (LTV) of £5,000. A customer from a rural area might be £500.

If you tell Google "All conversions are worth £50," the algorithm will optimize for the cheapest leads—which usually means low-quality, rural, mobile traffic.

Conversion Value Rules allow you to apply "Multipliers" to the value of a conversion based on:

1. Location
2. Device
3. Audience

This guide explains how to use them to fix your lead quality issues.

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Part 1: The Logic (Why this matters for Smart Bidding)

Smart Bidding (tROAS / tCPA) follows the value.

• If you tell Google a conversion is worth $100, it will bid up to your target to get it.
• If you tell Google a conversion is worth $50, it will bid half as much.

Value Rules allow you to say: "If this conversion happens in New York, multiply the value by 1.5x." (New Value = $150).

The algorithm sees this higher value and instantly bids more aggressively for New York users. You didn't have to change your keywords. You just changed the incentives.

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Part 2: The Three Types of Rules

1. Location Rules (The "Wealth" Filter)

Scenario: You are a B2B SaaS. You know that customers in "Tier 1 Cities" (SF, NY, London) close faster and pay more.

• Setup: Create a rule for "New York, San Francisco, London."
• Action: Multiply Value by 1.2x.
• Result: You dominate the auction in these hubs, while paying normal prices elsewhere.

Scenario: You are an Ecommerce store. Shipping to Hawaii costs you $50 extra.

• Setup: Create a rule for "Hawaii."
• Action: Multiply Value by 0.7x.
• Result: You bid less for these expensive-to-ship customers, protecting your margin.

2. Device Rules (The "Intent" Filter)

Scenario: High-ticket Consulting ($5,000 package).

• Data: People browsing on Mobile rarely buy. People on Desktop are serious.
• Setup: Create a rule for "Desktop."
• Action: Multiply Value by 1.5x.
• Result: You stop wasting budget on idle mobile scrollers and win the prime desktop placements.

3. Audience Rules (The "Loyalty" Filter)

Scenario: Recurring purchases.

• Data: A returning customer (on your remarketing list) has a 0% CAC payback period because you already acquired them. You want to bid aggressive to keep them.
• Setup: Audience = "Past Purchasers".
• Action: Multiply Value by 2.0x.
• Result: You ensure competitors can't steal your existing clients.

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Part 3: How to Set It Up (Step-by-Step)

1. Navigate: Tools & Settings → Measurement → Conversions.
2. Sidebar: Click Value Rules.
3. Create New Rule:
   • Select the Condition (Location, Device, Audience).
   • Set the Adjustment (Multiply by X or Add Y).
   • Note: We almost always use "Multiply". Adding a fixed value is confusing.
4. Apply to Campaigns:
   • You can apply rules to "All Campaigns" (Account Level) or specific ones.
   • Best Practice: Start at the Campaign level for your top performer.

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Part 4: Reporting (Did it work?)

You need to verify that the rules are firing.

1. Go to your Campaign view.
2. Segment by Conversions → Value Rule Adjustment.
3. Google will show you:
   • Original Value: $10,000.
   • Value Rules Adjustment: +$2,000.
   • Total Value: $12,000.

If the "Adjustment" column is $0, your rules are too strict (e.g., targeting a tiny location).

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Summary

Conversion Value Rules are the "Fine Tuning" knob on the Smart Bidding engine. They allow you to inject business intelligence (Margins, LTV, Lead Quality) directly into the algorithm.

The Strategy Checklist:

1. Analyze your CRM data. Which locations/devices have high LTV?
2. Apply a conservative 1.2x multiplier to those segments.
3. Apply a 0.8x multiplier to low-value segments (e.g., Mobile traffic for B2B).
4. Let tROAS do the rest.