Google Ads Conversion Value Rules: Adjusting Value by Location/Device

Smart Bidding (tROAS) is great, but it has a blind spot. It assumes that every "$100" conversion is worth exactly $100 to your business. But you know that isn't true.

• Segment A: A customer in California ($100 order) usually buys again 3 times. LTV = $400.
• Segment B: A customer in Florida ($100 order) usually returns the item. LTV = $10.
• Segment C: A mobile user calls you. Close Rate = 20%.
• Segment D: A desktop user fills a form. Close Rate = 5%.

To Google, these look identical. To you, they are worlds apart. Conversion Value Rules allow you to "whisper" this extra context to the algorithm.

In this guide, we break down the Value Adjustment Matrix, the 3 levers you can pull, and how to layer them for maximum impact.

The Financial Logic of Value Rules

If you treat every user the same, you overpay for low-quality users and underpay for high-quality ones. Value Rules are a Bidding Modifier applied to the predicted value of the conversion.

The Multiplier Formula: $$ \text{Adjusted Value} = \text{Base Conversion Value} \times (1 + \text{Adjustment}) $$

If a lead is worth $50, but you know New York leads close 2x faster, you set a rule: "New York = +100% Value." Google now bids as if that lead is worth $100. It bids aggressively to win the auction.

Theory: The 3 Levers

You can adjust value based on three things:

1. Location: (City, State, Country).
2. Device: (Mobile, Desktop, Tablet).
3. Audience: (Remarketing lists, Customer Match lists).

Note: You cannot yet adjust based on "Time of Day" or "Keyword" using Value Rules. Those are old-school bid modifiers (which Smart Bidding ignores). Value Rules are the only modifiers Smart Bidding respects.

Framework: The Value Adjustment Matrix

Do not guess. Use your CRM data. Export your last 1,000 sales. Pivot them by these dimensions.

| Dimension | Insight | Rule Strategy | | :--- | :--- | :--- | | Location | "NY and CA have 30% higher AOV." | NY, CA: +30% Value. | | Device | "Mobile traffic has 50% higher return rate." | Mobile: -50% Value. | | Audience | "Previous customers buy faster." | "All Converters" List: +20% Value. |

Execution: Setting Up Your First Rule

1. Go to: Tools & Settings → Measurement → Conversions.
2. Tab: Click "Value Rules" on the left sidebar.
3. Create Rule:
   • Condition: Location = "New York".
   • Action: Add 50% to conversion value.
4. Apply: You can apply this rule to "All Campaigns" or specific ones.

Pro Tip: Start with Location. It is the most stable variable. If you are a B2B SaaS, excluding or down-weighting low-cost countries is critical.

Advanced Strategy: The "Store Visit" Proxy

If you are a local business, you might track "Store Visits" as a conversion. But a store visit isn't cash. How do you value it? Use a Value Rule based on Audience.

• Create a Customer Match list of your "VIP Spenders."
• If a user from that VIP list walks into your store, that visit is worth way more than a random stranger.
• Rule: If Audience = VIP List, Value = $500. (Standard visit = $50).

Case Study: The B2B "Geo-Tiering"

Client: Enterprise Software Goal: High-Quality Leads only. Problem: They were geting cheap leads from states where they had no sales reps (e.g., Montana).

The Strategy:

1. We tiered their sales territories.
   • Tier 1: NY, CA, TX, IL (sales reps present).
   • Tier 2: All other states.
2. The Value Rule:
   • Tier 1 Locations: Multiply Value by 2.0.
   • Tier 2 Locations: Multiply Value by 0.5.

The Result:

• tCPA bidding immediately shifted spend.
• 70% of the budget moved to Tier 1 states.
• Sales team "Close Rate" increased from 15% to 22% because they were actually working leads in their time zone.

Pitfalls to Avoid

1. Double Counting

If you have a manual "Bid Adjustment" (+20% on Mobile) AND a Value Rule (+20% on Mobile), what happens? Manual Bid Adjustments are ignored by Smart Bidding (tCPA/tROAS). Value Rules are respected. So you aren't double counting, but you might be confused why your manual modifiers aren't working.

2. The "Reporting" Panic

When you add value rules, your "Conversion Value" column in reports will jump. Your ROAS will look artificially high. Action: Annotate the date you launched the rule. Explain to the client that "Value" now reflects "Business Value," not just "Checkout Value."

3. Over-Segmentation

Do not make a rule for every zip code. Google needs data density. Group your locations into broad buckets (Regions or States).

Summary

Value Rules are the bridge between "Google's Data" (Clicks) and "Your Data" (Profit).

Your Action Plan:

1. Audit your Sales by Region.
2. Audit your Close Rate by Device.
3. Create 1 Location Value Rule to upweight your best markets.
4. Switch to tROAS bidding to let the algorithm hunt for that extra value.

Teach the machine what "Good" looks like.