What two things are types of value-based Smart Bidding strategies? Select 2 Correct Responses
Select all correct answers
Correct Answers
Maximize conversion value
Maximize conversion value with target ROAS
Why is this the correct answer?
The two types of value-based Smart Bidding strategies are Maximize conversion value and Maximize conversion value with target ROAS. Both strategies direct Google's AI to optimise for conversion value rather than conversion volume — prioritising higher-value transactions over lower-value ones. Maximize conversion value spends the budget to achieve the highest total conversion value possible. Maximize conversion value with target ROAS adds a return-on-ad-spend constraint, so the system optimises for maximum value while maintaining a specified ROAS target.
Why are the other options incorrect?
Target impression share
Target impression share is a visibility-based bidding strategy that optimises for ad placement position, not conversion value — it is not a value-based Smart Bidding strategy.
Manual CPC
Manual CPC is not a Smart Bidding strategy at all — it requires advertisers to set bids manually and does not use Google's machine learning or optimise for conversion value.
Real-World Example
A luxury retailer with products ranging from £50 scarves to £2,000 handbags switches to Maximize conversion value with target ROAS set at 400%. Google's AI bids more aggressively for users showing intent to buy high-value items. After 60 days, total revenue from Google Ads rises by 44% while ROAS holds at 412% — demonstrating the value-based strategy's ability to prioritise high-revenue transactions.