Value-based bidding

Value-based bidding is any bidding strategy that optimises toward the value attached to conversions instead of their count. Target ROAS and maximise conversion value in Google Ads, and value optimisation in Meta's campaigns, are the common forms. The platform learns which clicks and impressions lead to high-value conversions and bids more for those.

The strategy inherits the meaning of the value you send. Most stores send order revenue, so the platform chases revenue and will happily pay for large, low-margin orders. Sending gross profit or contribution margin as the value instead turns the same machinery into profit-based bidding. That requires cost data in the store and a tracking setup, normally server-side, that can compute and send the adjusted value.

For reporting, an assistant can show the difference: revenue-based ROAS from the ad platform next to a profit-based view from store data. For optimisation, the change happens in the tracking layer rather than in the ad account, which is why tracking and profit data are treated as one topic on this site.