Microsoft Advertising yesterday updated its portfolio bid strategies, introducing the Max Conversion value option for advertisers seeking to optimize high-value conversions and total sales value across multiple campaigns. This development, revealed by Kevin Salat, Mallory Harwood, and Ashley Cooke in their September product roundup, marks a notable expansion of Microsoft's automated bidding capabilities, offering advertisers more sophisticated tools to maximize their return on investment.
According to the Microsoft Advertising team, portfolio bid strategies allow for the management of bidding across multiple campaigns that share a common goal. This unified approach enables the platform to automatically adjust bids, balancing the performance of under- and over-performing campaigns within the same strategy. The addition of Max Conversion value to the portfolio bid strategy options represents a significant enhancement for advertisers focused on driving high-value conversions and increasing overall sales revenue.
The Max Conversion value bid strategy, which was previously available only at the individual campaign level, focuses on optimizing bids to maximize the total conversion value within a given budget. By extending this capability to portfolio bid strategies, Microsoft Advertising now offers advertisers the ability to apply this optimization across multiple campaigns simultaneously. This expansion allows for a more holistic approach to campaign management, particularly beneficial for businesses with complex advertising structures or those managing multiple product lines.
Portfolio bid strategies operate on the principle of shared optimization. When multiple campaigns are included in a portfolio strategy, the system analyzes performance data across all included campaigns to make informed bidding decisions. This collective approach can lead to more efficient budget allocation and improved overall performance, as resources can be dynamically shifted to the best-performing areas across the entire portfolio.
The introduction of Max Conversion value to portfolio bid strategies aligns with the growing trend in digital advertising towards value-based optimization. Rather than focusing solely on the number of conversions, this strategy prioritizes the monetary value of those conversions. This approach is particularly valuable for businesses with products or services of varying profitability, as it allows the bidding system to prioritize high-value conversions that contribute more significantly to the bottom line.
To utilize the Max Conversion value bid strategy in a portfolio context, advertisers need to have conversion tracking properly set up, including accurate revenue data for their conversions. The system relies on this data to make informed decisions about bid adjustments and budget allocation across the portfolio of campaigns. It's worth noting that while the strategy aims to maximize overall conversion value, individual campaigns within the portfolio may experience varying levels of performance as the system works to optimize the aggregate result.
One of the key advantages of portfolio bid strategies, including the new Max Conversion value option, is their ability to manage bidding across campaigns with shared budgets. This feature can be particularly useful for advertisers looking to maintain strict budget controls while still leveraging the power of automated bidding across multiple campaigns.
The Max Conversion value strategy also offers the option to set a target Return on Ad Spend (ROAS). This additional layer of control allows advertisers to specify a desired return rate, guiding the automated bidding system to not only maximize conversion value but also to do so within the constraints of the specified ROAS target. This balance between maximizing value and maintaining profitability can be crucial for businesses operating with tight margins or specific financial targets.
It's important to note that while Max Conversion value is now available for portfolio bid strategies, it is not supported for Microsoft Store Ads. Advertisers using this particular ad format will need to explore alternative bidding strategies for those campaigns.
The implementation of Max Conversion value in portfolio bid strategies reflects Microsoft Advertising's commitment to providing advertisers with advanced tools for campaign optimization. By offering this strategy at the portfolio level, Microsoft is acknowledging the complex needs of modern digital advertisers who often manage multiple interconnected campaigns across various products, services, or market segments.
As with other automated bidding strategies, the effectiveness of Max Conversion value in a portfolio context relies heavily on the quality and quantity of conversion data available. Advertisers considering this strategy should ensure they have robust conversion tracking in place and sufficient conversion volume across their campaigns to allow the system to make informed bidding decisions.
The introduction of Max Conversion value to portfolio bid strategies comes at a time when advertisers are increasingly looking for ways to maximize the efficiency of their digital advertising spend. With economic uncertainties and growing competition in many markets, tools that can help optimize ad spend and drive higher-value conversions are likely to be well-received by the advertising community.
Key facts about the Max Conversion value portfolio bid strategy
- Announced on September 3, 2024
- Available for search and shopping search campaigns
- Focuses on maximizing total conversion value across multiple campaigns
- Requires accurate conversion tracking and revenue data
- Can be used with shared budgets across campaigns
- Offers the option to set a target Return on Ad Spend (ROAS)
- Not supported for Microsoft Store Ads
- Part of Microsoft Advertising's suite of automated bidding options
- Aims to optimize high-value conversions and total sales value
- Operates across multiple campaigns within a shared portfolio strategy