Smart Advertising Campaigns: How new solutions increase ROAS by 2–3 times

The introduction of machine learning algorithms and AI tools in Google Ads allows you to focus on the real value of each customer, rather than acting at random. Now you can optimize your advertising based not only on the number of leads, but also on the average purchase amount, frequency of repeat purchases, and other factors. This allows you to build promotion strategies around customers who actually buy. As a result, your business gets more conversions while effectively reducing costs.

The New Era of Google Ads

The main goal of the new Google Ads algorithms is to help find additional growth points that traditional semantics no longer cover. Businesses that learn to work with modern strategies will gain many advantages and opportunities, including:

• more accurate targeting of hot audiences;
• automatic detection of queries with high conversion potential;
• the ability to optimize bids in real time based on customer value.

Overall, advertising campaigns will become more flexible and profitable. The main thing is to understand how to work with the new tools correctly.

Customer Match and audience signals

Customer Match is a feature that allows you to upload your own customer data and create personalized audiences. Using it, you can train algorithms on real users who have already made purchases. This approach is an important competitive advantage.

In addition, algorithms receive a high-quality array for analysis and can find similar audiences with a high probability of purchase. Conversion-based signals will help you adapt new groups or targets to the desired traffic on time. This way, you can build your advertising campaigns around customers who actually generate revenue. And this is very important for increasing ROAS.

Value-Based Bidding: Focusing on customer value

One of the important updates is the Value-Based Bidding (VBB) strategy. Now businesses can optimize campaigns not only by the number of requests or purchases, but also by their actual value.

For example, a customer purchased goods worth $50. The algorithm receives a signal “value = 50.” Another customer placed an order worth $245, so the signal is “value = 245.” The algorithm understands that the second buyer is much more important because they brought in more revenue. Therefore, the system starts showing ads to those who are similar to the second buyer and may make a more expensive purchase.

Key advantages of Value-Based Bidding include:

• Focus on real profit. The system takes into account not only the fact of conversion, but also its value. It begins to attract not just a large amount of traffic, but specifically those who are willing to spend more.
• Working with priority customers. Algorithms learn to recognize the behavioral patterns of users with high average purchase amounts. In this way, advertising is tailored to those who are more likely to buy a more expensive product or service.
• Rational budget allocation. You can allocate most of your budget to customers who actually bring in money, rather than spending resources on conversions that do not bring tangible benefits. This allows you to increase the effectiveness of your advertising campaigns several times over and optimize your costs.

In addition, Value-Based Bidding allows you to take into account the long-term value of a customer (LTV). That is, not only the first purchase, but also future repeat purchases. For example, if a customer regularly uses the company’s services, this data can be transferred via CRM to Google Ads. This allows you to reach those who buy regularly.

Performance Max: Reaching the maximum number of customers

Performance Max is one of the main tools for scaling advertising campaigns. It combines all of Google’s advertising inventory, from the Display Network and YouTube to Gmail and Discover.

Businesses that confidently work with Performance Max gain several important advantages:

• Identification of strong formats. Various combinations of creatives (banners, texts, videos) and formats allow you to determine which options work best for a specific audience.
• Timely budget reallocation. Accurate performance tracking makes your campaign more flexible and cost-effective. You can increase funding for the most effective combinations and, conversely, reduce spending on those that bring fewer conversions.
• Effective scaling. By identifying the most effective formats, you can focus specifically on conversion traffic. Then your ads will bring in leads with high purchase potential, rather than just increasing your reach.

Best practices at the moment:

• Ad set with a focus on shopping results + signals (maximum target conversions per product feed).
• Comprehensive ad set (feed + banners + texts) to expand reach and ensure a steady flow of traffic.
• Comprehensive ad set with video (feed + text + banners + video) for scaling and working with new audiences.

With Performance Max, you get an advertising system that independently tests and finds the most effective combinations of creatives and formats, and quickly reallocates your budget to the most profitable areas.

AI-Max — A new way to run search campaigns

The main goal of this tool is not only to scale up advertising, but also to make it more accurate. Using AI-Max gives you these benefits:

• Identification of new growth points. Algorithms independently find search queries that have high conversion potential but were previously overlooked.
• Interaction with a hot audience. Algorithms find users who are already as ready as possible to make a purchase. This significantly reduces the cost of non-targeted traffic and increases ROAS.
• Improving ad quality. Detailed work with creatives has a significant impact on CTR and conversions.
• Smart real-time bid management. The system takes into account the value of a particular customer. This allows funds to be directed towards attracting customers who are capable of generating greater profits.

Thanks to AI-Max, advertising campaigns are not only more automated but also smarter. They allow you to attract customers more effectively without unnecessary budget expenditure.

Additional targeting options

Segmentation by device allows you to optimally allocate your budget, increase the effectiveness of each segment, and grow your overall ROAS. For example, mobile devices bring more conversions to a company, but they have a lower value. On PCs, the bid price may be higher, but the average purchase amount and ROAS are significantly higher than on mobile devices. By creating separate companies for different devices, you can spend your money more effectively.

Demographic targeting in GA4 helps you understand which age and gender groups bring in the most profit, as well as more accurately tailor your advertising and direct your budget to where there is the most potential.

In addition, Google now allows you to analyze search queries at the Performance Max level and create custom negative keyword lists. This allows you to filter out low-quality traffic and focus your budget on queries that actually work.

Another innovation is the ability to receive detailed statistics at the placement level. This allows you to clearly analyze:

• which sources conversions come from and how much they actually cost;
• how the budget is distributed among different placements;
• which sites have the greatest potential for increasing ROAS.

This gives you complete transparency of your advertising campaigns and allows you to focus on the most profitable traffic sources.

Expert opinion

Algorithms have become quite intelligent, and businesses should teach them how to work correctly. By providing the system with real data (about purchases, purchase amount, repeat orders), you make it understand that not all conversions are the same. As a result, campaigns become more accurate, the budget is used more rationally, and you get a 2-3 times higher ROAS compared to standard strategies.

Vladislav Zakharievich, Head of PPC

Let’s sum up

Using new tools is a must in a highly competitive environment. They allow you to work with customers in a targeted manner, focusing on those who really bring in money. Today, the success of promotion depends not so much on budget as on the ability to work with data and teach algorithms. Once you understand the logic, your business will be able to reach a whole new level.