Conversion value

Conversion value is the amount you tell Google Ads a conversion is worth, such as sales revenue or profit margin.

By Berend Vrakking, founder of Product Metrics. Updated 7 October 2026.

Formula

ROAS = conversion value ÷ cost

Google Ads shows this as the “Conversion value/cost” column. What it measures depends on the value you send: revenue, or profit.

Example

One order, two conversion values
Step	Value
Order revenue	€100.00
Profit after product cost	€40.00
Ad spend for the order	€25.00
Return when revenue is the conversion value (€100.00 ÷ €25.00)	4
Return when profit is the conversion value (€40.00 ÷ €25.00)	1.6

One order, two verdicts: 4 if you send revenue, 1.6 if you send profit. Same sale, same spend. Illustrative data.

For one product, and for an account

If your products vary in price, Google Ads Help recommends a different value for each conversion. Each order then carries its own value, and Target ROAS and Maximize conversion value work from it.

Send revenue, and a euro from a product with a 25% margin counts the same as a euro from one with a 50% margin. Bidding cannot tell them apart. Send profit and it can.

Full Signal Tracking sends revenue and profit to Google Ads as separate conversion actions, from an endpoint on your own domain, with new customers, returning customers and lifetime value as three more.

Common mistake

Sending revenue for every product and expecting bidding to know which euros are worth more. It cannot see margin unless the value carries it.

Questions

What is the difference between a conversion and conversion value?

A conversion is an action you count, such as a purchase. Its conversion value is what that action is worth to you. With values you see the total business value your ads generated, as well as how many conversions happened.

What does conversion value mean in Google Ads?

It is the value recorded for each conversion, such as sales revenue or profit margin. A dynamic value records a unique amount for each conversion. A static value gives every conversion the same amount, which Google Ads Help says may be less representative of each transaction.

Which Google Ads bid strategies use conversion value?

Two of them. Target ROAS aims for as much conversion value as it can at the return you set, and Maximize conversion value aims for the most total conversion value in the campaign.

Sources

Google Ads Help: About conversion values

Keep reading

ROASConversion value divided by cost.
Maximize conversion valueThe bid strategy that aims for the most conversion value.
Set a target ROAS from your marginTurn the value you send into a target.
POAS vs ROASSee what changes when profit is the value.
Full Signal TrackingSend profit and revenue to Google Ads as conversion values.
How to calculate ROASConversion value divided by ad spend, with worked examples.