Value-based bidding
Value-based bidding is automated bidding that optimizes toward conversion value instead of conversion count (tROAS and Maximize conversion value on Google Ads), and it's only as good as the values you feed it.

Value-based bidding (VBB) is automated bidding that optimizes toward conversion value instead of conversion count. On Google Ads that means the Maximize conversion value strategy and its target-ROAS (tROAS) variant: the algorithm bids more for auctions likely to produce high-value conversions and less for cheap ones, rather than treating every conversion as equal.
#Without real values, it's just counting with extra steps
VBB is an input contract, not a toggle. The strategy consumes per-conversion values (actual deal amounts from CRM imports, order values, or margin-adjusted numbers via conversion value rules), and if every conversion arrives worth the same default, the "value" strategy quietly degrades into equal-weighted counting. That's the trap for lead-gen accounts especially: a $99 signup and a $50k contract reported as identical conversions teach the algorithm to buy whichever is cheaper. Values are what let bidding distinguish buying meetings from buying customers.
In practice: value presence (the share of conversions arriving with a real value attached) is one of the signal-quality numbers Buron monitors continuously.
The full argument, with the worked case for why CPA-based optimization misleads once deal sizes vary, is Value-based bidding needs values you can trust. The values usually arrive via Offline conversion tracking: send CRM deals back to Google Ads, the strategy family they steer is defined at Smart Bidding, and the territory routes from Conversion tracking & signal quality.
Related terms
LTV & LTV:CAC ratio
Customer lifetime value (LTV) is the total value a customer generates over the relationship; the LTV:CAC ratio compares it to acquisition cost. For marketers, LTV is a bidding input, not a finance vanity metric.
Offline conversions
Offline conversions are conversions that complete away from your website (a deal won in the CRM, a contract signed), imported back into the ad platform and joined to the original click by click ID or hashed email.
Smart Bidding
Smart Bidding is Google Ads' auction-time automated bidding (Target CPA, Target ROAS, Maximize conversions, Maximize conversion value), setting a bid per auction from the conversion data you feed it.