A travel agency assigns to a quote request a specific value based on estimates and modelling. What type of value-centric category does this represent?
Correct Answer
Proxy
Why is this the correct answer?
Assigning a quote request a value derived from estimates and modelling is a proxy value. A proxy stands in for revenue that has not happened yet and cannot be measured directly at the moment of the conversion. The travel agency knows a quote request is not itself income, but it can calculate what one is typically worth: if one in five quotes becomes a booking with an average margin of £500, then each quote request can carry a proxy value of £100. That number lets value-based bidding optimise towards the outcomes that actually produce revenue, instead of treating every quote request as identical. Proxy values should be reviewed as the underlying rates change, and replaced with actual revenue through offline conversion imports whenever the business can report the real booking value back into Google Ads.
Why are the other options wrong?
Actual
An actual value is the real revenue recorded at the point of conversion, such as an ecommerce order total. A quote request produces no revenue at the time it is submitted.
Synthetic
Synthetic is not one of the value-centric categories used here. The concept being described — an estimated stand-in for future revenue — is a proxy value.
Predictive
Predictive values are produced by a model forecasting an individual user's likely future worth. Here the agency applies a calculated average based on historical conversion rates and margins, which is a proxy.
Real-world example
A travel agency finds that 18% of quote requests convert, at an average margin of £620. They send a value of £112 with every quote request conversion and switch to Target ROAS. Bidding shifts spend towards long-haul and multi-centre searches, where quote values are higher, and away from cheap city-break queries that generated volume but little margin.
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