Conversion value rules and value-based bidding
Conversion value rules allow advertisers to adjust conversion values dynamically based on location, device, or audience conditions before automated bidding calculates bids.
How Conversion Value Rules steer algorithms#
Smart Bidding algorithms optimise towards total recorded conversion value. Conversion Value Rules allow advertisers to express real-world business value nuances without altering on-site website tracking tags.
As explained in Microsoft Conversion Value Rules Help, 2026, rules apply mathematical adjustments (multiply by a factor or add a fixed amount) when specific conditions are met.
Supported rule conditions: audience, location, and device#
Microsoft Advertising supports primary and optional secondary conditions across three key dimensions:
- Audience Segments: Increase value for Customer Match lists, remarketing pools, or LinkedIn industry tiers (e.g., multiply by 1.3 for high-LTV customer lists).
- Geographic Location: Increase value for high-margin postal codes or Tier-1 cities.
- Device Category: Increase value for desktop workstation users with higher contract sizes.
Direct impact on Target ROAS and Max Conversion Value#
When a rule triggers, the reported conversion value increases, signalling to Target ROAS and Maximise Conversion Value algorithms to bid more aggressively on similar auctions in the future.
Conversion value rules modify the data stream that feeds machine learning, directly steering budget towards high-margin segments.
Measuring value rule performance in reporting#
Microsoft Advertising provides dedicated columns in reports (e.g., 'Conversion Value with Rules') to compare adjusted values against raw recorded website revenue as documented in Microsoft Campaign Management Value Rules API, 2026.
Consult our Microsoft Ads Hub for value rule design playbooks.
Practical value rule application examples#
The table below illustrates common business scenarios and their corresponding conversion value rule setups.
| Business Scenario | Condition | Rule Operation | Strategic Outcome |
|---|---|---|---|
| High-LTV Customer Loyalty | Audience: Past Buyers | Multiply by 1.25 | Bids up repeat customers with higher lifetime value |
| Regional High Margin | Location: London / SE England | Multiply by 1.20 | Prioritises regions with lower fulfillment costs |
| Enterprise Desktop Leads | Device: Computers | Multiply by 1.30 | Steers B2B budgets towards corporate workstation leads |
| Low-Margin Rural Areas | Location: Out-of-area regions | Multiply by 0.80 | Reduces bids on regions with expensive shipping |
Frequently asked questions#
What bid strategies are affected by Conversion Value Rules?
Conversion Value Rules directly influence Target ROAS and Maximise Conversion Value bidding strategies, as well as reporting columns in Microsoft Ads.
Can I apply multiple conversion value rules to the same conversion?
If multiple rules apply, audience rules take precedence over location rules, which take precedence over device rules, unless a secondary condition is configured.
Do Conversion Value Rules change the revenue shown in Google Analytics?
No, Conversion Value Rules only modify conversion values within Microsoft Advertising and do not alter on-site data sent to third-party analytics.
Can I use negative multipliers in conversion value rules?
You cannot use negative numbers, but you can use multipliers less than 1.0 (e.g., multiply by 0.7) to decrease the value of lower-tier segments.
Where do I configure Conversion Value Rules in Microsoft Ads?
Conversion Value Rules are configured under Conversions > Conversion Goals > Conversion Value Rules tab in the Microsoft Advertising dashboard.
Read more on this topic#
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