What is conversion value?
Conversion value is the amount of money or business value assigned to a conversion, such as a purchase or a lead. Advertisers use it to measure return on ad spend and to tell ad platforms which conversions matter most.
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How conversion value is set
For online stores, the value is often the order total passed from your site to the ad platform. For lead generation, you estimate it, for example from the average revenue a lead produces over time.
Different conversions can carry different values. A completed sale is usually worth more than a newsletter signup, and your values should reflect that.
Why conversion value matters
Without values, every conversion looks equal, and you can only track counts. With values, you can calculate ROAS and let bidding strategies aim for revenue instead of volume.
Keeping values accurate
Check that the value passed by your tracking matches real orders. Decide whether to use revenue or profit, and apply the same rule across campaigns. Values based on guesses should be reviewed against actual results.
Common questions
Is conversion value the same as revenue?
Often it is, for ecommerce. For leads, it's an estimate of what the lead is worth, and some advertisers use profit or margin instead of revenue.
How do I assign a value to a lead?
A common approach is to multiply the share of leads that become customers by the average value of a customer. Update the estimate as you learn more from your sales data.
What is the difference between conversion value and conversion count?
Conversion count tells you how many conversions happened. Conversion value tells you how much they were worth, so it supports return-based goals.
Does conversion value affect bidding?
Yes, for strategies that use it. Value-based approaches such as target ROAS use conversion value to decide how much each auction is worth.
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