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Understanding Value-Based Bidding (VBB) in DV360

Value-Based Bidding (VBB) is a sophisticated bidding strategy that goes beyond simply optimizing for conversions. Instead, it focuses on maximizing the predicted conversion value, which could be revenue or lead value.

How VBB Works

In essence, VBB aims to get the most valuable conversions for your budget. This is typically achieved through:

  • Maximize conversion value: This strategy spends your budget to achieve the highest total conversion value.
  • Target ROAS (Return on Ad Spend): This strategy optimizes your bids to hit a specific ROAS target.

To effectively use VBB, it's crucial to pass conversion values (e.g., Floodlight revenue or static values) with your conversions.

VBB in DV360: Two Main Approaches

DV360 offers different ways to implement VBB depending on the inventory type:

  1. YouTube & Partners (Video Action / TrueView / Demand Gen):

    • DV360 natively supports VBB strategies like Maximize conversion value and Target ROAS for these inventory types.
    • You can configure these strategies using Structured Data Files (SDF) for bulk operations or the newer v4+/v5 API resources for programmatic management.
    • When using SDF, you'd set the TrueView Bid Strategy Type to Maximize Conversion Value or Target ROAS (specifying the ROAS target as a fraction, e.g., 1.5 for 150%).

  2. Open-Web Display/Video:

    • For open-web inventory, VBB is typically approximated by combining Automated bidding with Custom Bidding.
    • This involves scoring impressions with a value model (e.g., LTV scores) using a Custom Bidding algorithm.
    • Alternatively, if you don't have strong value signals, you might use CPA/CPC goals.
    • Through the DV360 API, you'd enable an auto-bid strategy and point it to a Custom Bidding algorithm that scores impressions based on their expected value. This is considered the standard path for value-based optimization on non-YouTube inventory.

Practical Checklist for Implementing VBB

To get started with VBB, consider these key steps:

  1. Pass Value with Conversions: Ensure your Floodlight conversions or other conversion tracking methods are configured to pass dynamic revenue or static values.
  2. Select Your Strategy:
    • For YouTube & partners, choose Maximize conversion value or Target ROAS within the SDF or UI.
    • For Display/Video, implement a Custom Bidding algorithm that generates value scores and apply an auto-bidding strategy against it.
  3. Set Guardrails: Optionally, set a maximum CPM (Cost Per Mille) to prevent overspending. This can be done via SDF or the maxAverageCpmBidAmountMicros field in the API.

If you can share details about your specific use case, such as whether you're targeting YouTube or open-web inventory, how you're currently passing conversion values, or your ROAS targets, I can provide more tailored guidance on the exact API or SDF payload you would need.