The Importance Of Data In Optimising Your Value-Based Bidding Campaigns

Using data effectively is key to driving high-value conversions,  as businesses embrace value-driven bidding strategies, having a robust data plan that aligns with your business goals and boosts ROI is more critical than ever.

At Digital Nomads Hong Kong, we’ve witnessed how optimising data strategies for value-based bidding campaigns can lead to exceptional results. Take our work with Aerotel and Plaza Premium Lounge, for example. By developing tailored data strategies and using value-based bidding, we unlocked significant growth in conversions, increasing revenue while keeping costs under control.

In the first few months of our collaboration, Plaza Premium Lounge has experienced significant growth, with conversions increasing by an average of 30% month over month, driven by our customised strategies to enhance customer engagement and acquisition. At the same time, Aerotel has seen remarkable improvements due to ongoing optimisation efforts, achieving a 43% reduction in cost per conversion. This has not only made their campaigns more cost-effective but also resulted in a 63% increase in total monthly revenue since the start of the Google Ads search campaigns. These results reflect the power of our data-driven approach, combining precise targeting with continuous refinement to maximise efficiency and revenue for both brands.

 

So, how can you create a data strategy that works hand-in-hand with value-based bidding to deliver real, measurable outcomes? Here are the essential steps.

Understanding Value-Based Bidding

Before diving into strategy, let’s clarify what value-based bidding means. It’s a bidding approach that focuses on the actual value each conversion brings to your business. Instead of just driving clicks or visits, value-based bidding prioritises actions that maximise profits—whether that’s purchases, sign-ups, or generating high-value leads.

As a best practice, we implement value-based bidding by incorporating data that reflects the true business value of each conversion. We don’t just look to increase clicks; we focus on driving conversions that genuinely impact your bottom line.

The Power of Data in Value-Based Bidding

Data is the cornerstone of any successful value-based bidding campaign. With the right data, you can measure or optimise the actions that truly matter. To fully leverage value-based bidding, you need a solid data strategy that informs your bids and ensures they’re aligned with your business’s financial goals.

Our campaigns for Aerotel and Plaza Premium Lounge demonstrate the power of a well-structured data approach. By analysing customer behaviour, past purchase data, and seasonal trends, we designed campaigns that prioritised high-value customers. This resulted in a notable increase in bookings and lounge service upgrades, proving that data-driven decisions lead to optimal results.

Step 1: Define Your Conversion Value

Every strong data strategy starts with defining success. For Aerotel and Plaza Premium Lounge, success wasn’t just about increasing footfall—it was about attracting the right customers willing to book premium services. The value of each conversion wasn’t based solely on volume but on the revenue generated from those conversions.

To replicate this, begin by determining the value of each conversion action in your campaigns. Whether it’s a high-ticket purchase, subscription sign-up, or service request, understanding the worth of each conversion helps you tailor your bids, maximising ROI.

Step 2: Ensure Data Accuracy and Completeness

Once you know the value of each conversion, it’s crucial to ensure your data is accurate and complete. Value-based bidding depends on feeding precise, timely data into platforms like Google Ads or Facebook/Meta Ads. That means making sure your tracking pixels, tags, and data pipelines are set up correctly.

For Aerotel and Plaza Premium Lounge, we conducted a thorough audit of their analytics setup. We corrected tracking issues and implemented advanced event tracking to capture key customer actions across their websites. The result? More accurate data allowed us to fine-tune campaigns and continuously optimise bidding strategies with real-time insights.

Step 3: Segment Your Audience

Value-based bidding requires more than a one-size-fits-all approach. Segmenting your audience helps you more effectively target high-value users and adjust bids based on their likelihood of converting.

For Aerotel and Plaza Premium Lounge, we used advanced audience segmentation to differentiate between customers who were likely to make a single booking and those more inclined to use premium services. By creating specific audience groups based on customer behaviour, we were able to allocate budgets more efficiently and focus on segments with the highest revenue potential.

Step 4: Automate and Optimise

One of the main benefits of value-based bidding is automation. Platforms like Google and Facebook offer machine-learning tools that adjust bids automatically based on real-time data. However, for automation to work effectively, it needs to be paired with constant optimisation.

 We continuously monitored our campaigns for Aerotel and Plaza Premium Lounge. By consistently optimising bids in response to seasonality, client trends, and shifts in the competitive environment, we effectively maximised the return on investment.

Step 5: Analyse and Adapt

A successful data strategy involves ongoing analysis. When implementing value-based bidding for Aerotel and Plaza Premium Lounge, we analysed performance at every step. Instead of focusing solely on top-line metrics like click-through rates, we prioritised the metrics that really mattered—revenue per booking, customer lifetime value (LTV), and average booking size.

This in-depth analysis enabled us to refine campaigns even further, delivering greater results in subsequent months. By emphasising continuous improvement, we were able to swiftly respond to shifts in customer preferences and the competitive landscape.   

Conclusion: Driving Success with Value-Based Bidding

Value-based bidding is a game-changer for businesses aiming to maximise their marketing budgets. By focusing on the value each conversion brings, rather than simply increasing volume, you can build more profitable campaigns that directly contribute to your bottom line.

At Digital Nomads Hong Kong, we’ve seen firsthand how value-based bidding can drive outstanding results. Our successful campaigns for Aerotel and Plaza Premium Lounge demonstrate the impact a well-executed data strategy can have on business growth. By following these steps—defining conversion values, ensuring data accuracy, segmenting audiences, automating bids, and continuously analysing results—you can set your business up for long-term success with value-based bidding.

Are you looking to take your digital marketing to the next level? Get in touch with us today. We specialise in using value-based bidding strategies to drive high-value conversions, increase customer engagement, and maximise ROI. Together, let’s design a customised plan that meets your company objectives and yields quantifiable outcomes.