What is an essential first step for effective value-based bidding strategies?

An essential first step for effective value-based bidding strategies is developing a strong measurement and attribution strategy. This is crucial because value-based bidding relies on accurate data to assess the performance of various ads and campaigns effectively. By implementing a robust measurement framework, businesses can track key performance indicators (KPIs) like conversions, value per transaction, and return on ad spend (ROAS). This data enables advertisers to understand which actions lead to meaningful outcomes and to allocate resources more effectively.

Without a strong measurement and attribution strategy, it becomes difficult to determine which bidding strategies are delivering the best results and to make informed decisions about future campaigns. As a result, this first step lays the foundation for optimizing bidding strategies based on actual performance, ensuring that decisions are data-driven rather than based on assumptions or guesswork.