Setting up dynamic conversion value and optimizing for Value Bidding
How we set up dynamic conversion value transfer via Google Tag Manager and optimized advertising for Value Bidding
What it's all about
Google is actively promoting Value Bidding — a strategy where ad campaigns are optimized not just for the number of conversions, but for their value. For e-commerce, it’s straightforward: you have an online store, clear revenue and average order value data, and you pass it directly into ad platforms. Then you simply optimize campaigns for Target ROAS or Maximize conversion value.
But not all projects are that transparent. In subscription services, marketplaces, or products with a customer lifetime cycle, the real value doesn’t appear right away. That’s why we needed to build a system that would help Google Ads understand which users are worth acquiring.
Project example
Users register in the service. On the surface, that’s a conversion. But the value differs: one is a 25-year-old guy from the US with an iPhone, another is a 45-year-old man from Europe with an old Android. Their likelihood to keep paying is completely different.
Next comes the first payment. Usually it’s a bonus payment of around $3 — just to get the user engaged. Then comes the purchase history: second, third, fourth payment. Within the first week, it’s already clear whether the user will stick around.
And the key question: how do we pass this difference to ad platforms? So that the algorithm understands not only the fact of a “registration” or “first payment,” but the potential long-term value of the customer.
Solution: dynamic value
We developed a Dynamic value system.
Registrations are not counted as conversions. They don’t reflect actual value.
First key action — spending all free credits. If a user does this, it shows real interest.
First payment. We track it, but we know it’s often just an entry offer.
Second payment. This is the real signal. No discounts anymore, and if the user pays again, they’re valuable.
We stopped passing third and later payments to avoid distortions (one high-spending user could skew the whole picture).
Technical setup
Using Google Tag Manager, we combined all key actions into a single conversion with dynamic value.
In Google Ads we created a conversion with “dynamic value.”
From GTM we send different events with assigned values:
- spending all free credits,
- first payment,
- second payment.
Analytics
Value
calculation
GTM
Triggers
ROAS
Bidding
Together with analysts, we calculated a “synthetic value” so that on average one user would represent around $500 (our conditional LTV).
This way, Google Ads receives not just conversion facts, but weighted values.
Results
This approach allowed us to:
drop “empty” conversions,
send better-quality customer signals to Google Ads,
optimize campaigns for actual value, not just registrations.
The next steps are classic: start with “Maximize conversions,” then switch to Target ROAS.
Value Bidding works great not only in e-commerce but in any project where customer value unfolds over time.
