Value-Based Bidding: How to Configure Google Shopping Conversion Tracking to Focus on High-Value Customers

Not all conversions are created equal. A $15 accessory order and a $300 multi-product cart shouldn't be treated the same—especially in Google Shopping campaigns where margins matter. That’s where value-based bidding comes into play.

In this blog, we’ll walk you through how to configure your Google Shopping conversion tracking for value-based bidding so your campaigns can prioritize high-value customers—not just any customer.

What Is Value-Based Bidding in Google Ads?

Value-based bidding allows Google Ads to optimize not just for the number of conversions, but for the total conversion value. Instead of simply asking, "Did this click lead to a purchase?", you're asking, "How much was that purchase worth?"

When set up correctly, Google will use this data to bid higher for users more likely to generate high-value orders, improving your return on ad spend (ROAS).

Why It Matters for Google Shopping Campaigns

If your Google Shopping strategy only focuses on volume-based bidding (e.g., Maximize Conversions), you could end up spending budget on low-value purchases that barely move the revenue needle.

By feeding accurate revenue data into your conversion tracking setup, value-based bidding allows you to:

• Prioritize high-margin products.

• Bid more aggressively for customers likely to spend more.

• Improve efficiency by focusing budget on the most profitable actions.

Step-by-Step: Configure Google Shopping Conversion Tracking for Value-Based Bidding

1. Ensure Your Conversion Action Tracks Revenue

Head to Tools & Settings > Conversions > Purchase Conversion Action and make sure it’s set to:

• Include in “Conversions”: ✅

• Value: Use different values for each conversion

If it says “Use the same value for each conversion,” change this immediately. You’ll need to dynamically send the transaction value to Google Ads through your conversion tag.

2. Set Up Dynamic Revenue in Your Conversion Tag

Whether you’re using Google Tag Manager, the Google Ads tag directly, or Enhanced Conversions, make sure you're passing transaction-specific values.

Example with Google Tag Manager:In your Google Ads Conversion Tag, configure:

• Conversion Value: {{Transaction Value}} (variable pulling from your data layer)

• Currency Code: {{Currency}}

Make sure your data layer pushes transaction-specific values like this:

javascript

dataLayer.push({  'event': 'purchase',
  'ecommerce': {
    'currency': 'USD',
    'value': 219.99,
    ...
  }
});

3. Use a Bidding Strategy That Prioritizes Value

Once tracking is set up correctly, switch to one of the following bidding strategies:

• Maximize Conversion Value

• Target ROAS (tROAS)

These strategies leverage your conversion value data to automatically bid higher for clicks that are likely to lead to more revenue.

Pro Tip: Start with “Maximize Conversion Value” to build data, then move to “Target ROAS” once you understand your average order value and ideal margins.

Bonus: Use Customer Lifetime Value (CLV) Signals

If your store has repeat buyers, consider feeding first-party data back into Google Ads using Enhanced Conversions for Leads or offline conversion imports. This way, Google can start optimizing based on customer value over time, not just per transaction.

This is especially powerful for subscription models or high-ticket brands where the initial order is just the beginning of a longer relationship.

Common Mistakes to Avoid

• Hardcoding Static ValuesAvoid setting a static conversion value like $1 or $50 for all purchases. This trains Google to treat all conversions equally.

• Tracking Revenue in GA4 OnlyGA4 doesn’t share conversion value data with Google Ads unless connected and configured properly. Make sure your value-based tracking is implemented via Google Ads or Tag Manager directly.

• Ignoring Currency FormatAlways pass the correct currency in the data layer or conversion tag. Misaligned currencies can skew ROAS reporting.

Final Thoughts

Value-based bidding is one of the most underutilized levers in Google Shopping optimization. It allows you to align your ad spend with what truly matters—profitability, not just volume.

When you configure your conversion tracking correctly and switch to value-based bidding, you're no longer flying blind. You're giving Google the information it needs to find the customers who are most valuable to your business.

Need help setting up conversion tracking for value-based bidding? Contact us and we’ll handle the full implementation for your store.

About the Author Adnan is a digital marketing specialist with expertise in e-commerce optimization. With a bachelor's degree in Business Psychology focused on online customer behavior and analysis, he brings a unique perspective to understanding shopping behaviors and conversion patterns.