As digital marketing strategies evolve, PPC (pay-per-click) advertisers are constantly seeking ways to maximize performance while minimizing wasted ad spend. Broad match and value-based bidding strategies are among the latest trends gaining traction in 2024.
Broad match has undergone significant improvements, thanks to Google’s advancements in machine learning, and it’s now a highly effective tool for discovery. On the other hand, value-based bidding strategies, such as Target ROAS (tROAS) and Maximize Conversion Value, offer advertisers the ability to optimize their ad spend based on conversion value rather than pure volume.
In this guide, we’ll explore the latest updates on broad match, how it works, and how value-based bidding can help businesses achieve higher profitability. We’ll also explore how combining these strategies can enhance campaign performance and deliver exceptional return on ad spend (ROAS) in 2024.
What is Broad Match in 2024?
In its simplest form, Broad match is a keyword match type in Google Ads that allows advertisers to reach a wide range of search queries, including those that are not exact matches to the targeted keywords. In the past, Broad Match had a reputation for delivering low-quality traffic, as ads would sometimes appear for irrelevant searches. However, recent advancements in Google’s machine learning and natural language processing (NLP) have significantly improved broad match, making it more precise and effective.
In 2024, broad match leverages a combination of user intent signals, search behavior, and historical data to better match ads with relevant search queries. Google’s algorithms now consider various factors such as user location, browsing history, and even synonyms of the targeted keywords. This results in a broader reach while maintaining relevancy, allowing advertisers to appear in searches that they may not have considered yet could convert into valuable leads or customers.
For instance, if you’re running a campaign for “organic skincare products,” a broad match keyword could trigger your ad for related queries like “natural beauty products” or “best skincare for sensitive skin.” These related searches help expand your visibility without requiring an exhaustive list of keywords.
Why Broad Match is Effective for Discovery
One of the primary benefits of broad match is its ability to help advertisers discover new, high-converting keywords. Since it casts a broader net than phrase or exact match, it uncovers search queries that might not have been part of your initial keyword list but are closely related to what your potential customers are searching for.
For example, a campaign targeting “running shoes” might also capture searches for “best sneakers for running” or “lightweight athletic shoes,” revealing new keywords that could drive significant conversions. By identifying these opportunities, broad match provides invaluable data that can be used to optimize future campaigns.
Additionally, broad match saves time by reducing the need for exhaustive keyword research. Instead of manually building out extensive keyword lists, advertisers can rely on broad matches to cover a wide range of relevant queries. This can be particularly helpful for new campaigns or product launches, where keyword performance data may be limited.
However, to avoid irrelevant traffic and wasted ad spend, it’s essential to use negative keywords in conjunction with broad matches. Negative keywords act as filters that prevent your ads from showing for irrelevant searches. For instance, if you’re targeting “luxury watches,” you might want to add “cheap” as a negative keyword to avoid attracting bargain shoppers.
What is Value-Based Bidding?
Value-based bidding refers to bidding strategies that focus on maximizing the value of conversions rather than the volume. Two of the most popular value-based bidding strategies in Google Ads are Target ROAS (tROAS) and Maximize Conversion Value.
- Target ROAS (tROAS): This strategy allows advertisers to set a target return on ad spend. Google then automatically adjusts bids to achieve the specified ROAS. For example, if you set a tROAS of 500%, Google will aim to generate $5 in revenue for every $1 spent. This approach prioritizes high-value conversions over lower-value ones, ensuring your budget is spent more efficiently.
- Maximize Conversion Value: This bidding strategy optimizes your ad spend to drive the highest possible conversion value. Unlike tROAS, which focuses on a specific return on ad spend, this strategy aims to get the most conversion value for your budget without adhering to a predefined ROAS target. It’s particularly useful for campaigns with varying product or service values, where different conversions hold different levels of importance to your business.
The effectiveness of value-based bidding strategies relies heavily on the accuracy of your conversion data. It’s crucial to have proper conversion tracking in place and to assign accurate values to each type of conversion, whether that’s a product purchase, a lead form submission, or any other desired action. By feeding Google accurate data, you empower its algorithms to make smarter bidding decisions that align with your business’s profitability goals.
Combining Broad Match with Value-Based Bidding for Maximum Profitability
Combining broad match and value-based bidding strategies is a powerful way to scale your PPC campaigns while focusing on profitability. Broad match drives discovery by expanding your reach, while value-based bidding ensures that your ad spend is prioritized toward high-value conversions.
By using broad matches to tap into a wider audience and value-based bidding to optimize for the most profitable actions, advertisers can achieve both growth and efficiency in their campaigns. For instance, a broad match campaign paired with tROAS can help you attract many potential customers while ensuring that your bids are focused on those most likely to generate the highest revenue.
Another effective strategy is Smart Bidding, which automates bid adjustments based on real-time signals such as device type, location, and time of day. Smart Bidding works seamlessly with both broad match and value-based bidding, making it easier to manage campaigns while optimizing for conversion value.
When combining these strategies, starting with conservative goals is important, especially if you’re new to value-based bidding. Setting overly aggressive ROAS targets too early can limit your campaign’s performance. Google’s algorithms need time to learn and optimize. Allow your campaigns to run for at least 1-2 weeks before making major adjustments.
Best Practices for Broad Match and Value-Based Bidding in 2024
To maximize the effectiveness of broad match and value-based bidding strategies, it is essential to follow best practices that help you avoid common pitfalls and optimize performance. In 2024, these techniques will be more important than ever, given the advancements in Google’s algorithms and the increasing complexity of PPC campaigns.
1 – Use Negative Keywords
While broad match can uncover valuable new keywords, pairing it with a strong negative keyword strategy is crucial. Negative keywords prevent your ads from appearing for irrelevant search queries, thus saving your budget from being wasted on unqualified traffic. For instance, if your campaign is focused on high-end products, adding negative keywords like “cheap” or “discount” can ensure that your ads aren’t shown to users looking for low-cost options.
Regularly reviewing your search term reports will help you identify new negative keywords. As your campaign runs, monitor searches that lead to clicks but don’t result in conversions. Add these terms to your negative keyword list to continually refine the targeting of your ads.
2 – Start with a Conservative tROAS
Starting with conservative targets is essential when setting up a value-based bidding strategy like Target ROAS. If you set an overly ambitious ROAS goal right from the start, Google’s algorithm may limit your reach by avoiding lower-value conversions that could help feed data into the system for future optimization. A conservative tROAS allows your campaign to collect more conversion data early, helping Google learn which keywords and audiences are most profitable.
As your campaign gathers data and performance improves, you can gradually increase your tROAS target to drive more aggressive returns.
3 – Allow Time for Learning
Both broad match and value-based bidding rely on Google’s machine learning algorithms to optimize performance over time. For this reason, it’s critical to allow sufficient time for your campaigns to move through the learning phase. Typically, it takes about 1-2 weeks for Google’s algorithms to fully analyze the data and adjust bids based on user behavior and conversion history.
During this period, avoid making major campaign changes, as doing so can reset the learning phase and delay optimization. Patience is key, and your campaigns will likely perform better once they’ve had time to stabilize.
4 – Monitor Search Term Reports
One of the most effective ways to ensure your broad match strategy works as intended is by regularly reviewing your search term reports. These reports show the actual search queries that triggered your ads, giving you insights into whether broad match is delivering relevant traffic.
Use the data from these reports to make adjustments, such as adding new negative keywords or refining your ad copy to better align with high-converting queries. Over time, this process will help you fine-tune your campaign and improve the quality of the traffic you attract.
Common Pitfalls to Avoid with Broad Match and Value-Based Bidding
While broad match and value-based bidding can be powerful tools, advertisers should avoid several common mistakes to ensure optimal performance.
Overly Aggressive ROAS Targets
As mentioned, setting overly aggressive ROAS targets too early in your campaign can stifle performance. When you set high ROAS targets from the outset, Google may struggle to find enough high-value conversions to meet your goals, which could result in limited ad visibility and lower traffic. It’s better to start with a more conservative target and adjust it upward once your campaign has collected sufficient data.
Misinterpreting the Learning Period
Many advertisers become frustrated when their campaigns don’t perform well during the learning phase, but it’s important to understand that fluctuations in performance are normal during this time. Google’s algorithms need time to analyze user behavior, test different bid strategies, and adjust accordingly. Only after the initial learning phase will you be able to evaluate performance more accurately and make informed decisions about adjustments.
Ignoring Conversion Delays
Conversion delays—also known as conversion lag—refer to the time users complete a conversion after interacting with an ad. Conversions may not happen immediately for some campaigns, especially those involving high-consideration purchases. Failing to account for this delay can lead to inaccurate evaluations of your campaign’s performance.
To mitigate this, ensure that you analyze conversion data using a wide enough date range and consider using conversion delay reports to better understand when conversions are happening.
Conclusion: Achieving Success with Broad Match and Value-Based Bidding
In 2024, combining broad match and value-based bidding strategies offers PPC advertisers a powerful way to scale campaigns while focusing on profitability. Broad match provides greater reach by discovering new, relevant keywords. At the same time, value-based bidding ensures that ad spend is allocated toward conversions that drive the most value.
By following best practices—such as using negative keywords, setting conservative ROAS targets, and allowing time for campaigns to optimize—you can achieve impressive results with these strategies. The key to success lies in continuously monitoring performance, making data-driven adjustments, and aligning your advertising goals with your business’s profitability objectives.
By embracing broad match and value-based bidding, you’ll be well-positioned to achieve higher ROAS and more efficient ad spend, making your PPC campaigns more effective and profitable in future years.
Frequently Asked Questions About Broad Match and Value-Based Bidding
As advertisers embrace broad match and value-based bidding strategies in 2024, a few common questions will arise. Here are some answers to help clarify the key concepts.
How do I set up value-based bidding in Google Ads?
Setting up value-based bidding is relatively straightforward. First, you’ll need to ensure accurate conversion tracking, with each conversion action assigned a value. Then, go to your campaign’s settings, select a value-based bidding strategy like Target ROAS or Maximize Conversion Value, and input your desired targets. Make sure to monitor performance and adjust your targets as needed based on your campaign’s results.
Is broad match suitable for all types of campaigns?
Broad match can be highly effective for discovery campaigns, where the goal is to reach a wider audience and find new, high-converting keywords. However, using phrases or exact matches may be more appropriate for campaigns with particular targeting needs or limited budgets. Broad match is best used when you want to cast a wider net while still relying on Google’s machine learning to maintain relevance.
What are the key metrics to track when using broad match and value-based bidding?
When running campaigns that use broad match and value-based bidding, key metrics to monitor include ROAS (return on ad spend), conversion value, search term reports, and impression share. Tracking these metrics will give you insight into whether your ads are driving high-value conversions and whether your campaign is reaching a relevant audience.
How does value-based bidding impact my daily budget?
Value-based bidding strategies like tROAS and Maximize Conversion Value automatically adjust your bids based on the expected conversion value. This can sometimes result in fluctuations in your daily spending, especially if your target ROAS is very aggressive. Be sure to monitor your budget regularly and adjust your targets if your spending exceeds expectations.