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.

The algorithm bids more for auctions likely to produce high-value conversions and less for cheap ones, rather than treating every conversion as equal. It consumes per-conversion values: actual deal amounts from CRM imports, order values, or margin-adjusted numbers via conversion value rules.
#Without real values, it's counting with extra steps
If every conversion arrives carrying the same default value, 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: whether your conversion actions are actually carrying values is one of the scheduled checks Buron runs on Google Ads accounts.
The worked case for why CPA-based optimization misleads once deal sizes vary: Value-based bidding needs values you can trust. The values usually arrive via Offline conversion tracking; the strategy family is Smart Bidding.
Related terms
LTV & LTV:CAC ratio
Customer lifetime value (LTV) is the total value a customer generates over the whole relationship; LTV:CAC divides it by the cost to acquire that customer.
Offline conversions
Offline conversions complete away from your website and are imported back into the ad platform afterward, joined to the original ad click by click ID or hashed email.
Smart Bidding
Smart Bidding is Google Ads' auction-time automated bidding (tCPA, tROAS, Maximize conversions, Maximize conversion value), setting each bid from the conversion data you feed it.