The Power of Lead Scoring and Value-Based Bidding on Google Ads
/At Stand Out Digital, we believe in pushing the boundaries of digital advertising to drive exceptional results for our clients. Today, we want to share an exciting project we undertook for a European client, revolutionizing their digital advertising strategy through a bespoke lead scoring model and value-based bidding on Google Ads. In this blog post, we'll explore the benefits of this approach, provide practical tips for setting the right ROAS value, and share the early positive results we've achieved.
The Power of Lead Scoring: We all know that not all leads are created equal. That's where lead scoring comes in. By assigning scores based on specific criteria, we can prioritize our efforts and resources towards leads that have a higher likelihood of converting. This not only streamlines our sales process but also boosts the overall efficiency of our campaigns.
Explaining the Benefits of Moving from Lead-Based Bidding to Value-Based Bidding: Say goodbye to the traditional approach of focusing solely on lead volume. With value-based bidding, we can optimize our budget allocation by considering the potential value of each lead. By investing more in leads with a higher conversion potential, we can supercharge our campaign performance and maximize our returns on ad spend.
Practical Tips for Setting the Right ROAS Value: Determining the appropriate Return on Ad Spend (ROAS) value is a crucial step in implementing value-based bidding. Here's a practical tip from our experience: consider the difference in conversion rates between prospects with and without the service.
For example, let's say prospects without the service convert at a rate of 15%, while prospects with the service convert at a rate of 5%. We can assign a "fake" value per conversion to each lead category. In this scenario, the high-value leads (without the service) could be assigned a value of 75, while the low-value leads (with the service) could be assigned a value of 25. The specific values are arbitrary but serve as a reference for bidding purposes within the algorithm. The key is to establish a clear distinction in value based on the difference in conversion rates.
To ensure accuracy, it's crucial to validate the data flow and monitor the revenue generated through our platform. Gradually increasing the ROAS target allows us to attract more high-value leads while maintaining profitability.
Early Positive Results: Since implementing our lead scoring and value-based bidding approach, we're thrilled to share the positive results we've achieved. We've successfully reduced the cost per sale by 5% while maintaining a consistent volume of sales. These early wins highlight the effectiveness of our data-driven optimization strategy and demonstrate the potential for long-term success.
Conclusion: Lead scoring and value-based bidding offer a powerful combination to supercharge our digital advertising campaigns. At Stand Out Digital, we're proud to have implemented a bespoke lead scoring model and leveraged value-based bidding on Google Ads, all with the goal of driving remarkable results for our clients.
By transitioning from lead-based bidding to a more targeted approach that focuses on high-value leads, we can optimize our marketing budget, improve conversion rates, and maximize overall campaign effectiveness. The practical tips we've shared for setting the right ROAS value allow us to fine-tune our bidding strategy and attract the most valuable leads.
As the digital landscape continues to evolve, it's crucial for us as marketers to embrace innovative strategies like lead scoring and value-based bidding. By leveraging data and insights, we can stay ahead of the competition and unlock success in our digital advertising endeavors.
