What is conversion value?
Conversion value is the amount of money attached to a conversion when it is sent to an ad platform, so the platform can weigh one conversion against another. For a gym, a lead is worth nothing until the person pays.
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Conversion value for gyms
Every conversion you send to Google or Meta can carry a number: what that conversion was worth to you. The platforms add those numbers up into the revenue they report, divide by spend to produce the ROAS in the dashboard and, if you let them, bid toward the clicks that produce the most of it. Conversion value is that number, and it is only ever as honest as whoever attached it.
Here is the gym trap. The conversion most accounts send is the form fill, and a form fill has no value in any sense a bookkeeper would recognize, so someone makes one up: a flat amount per lead, chosen because the platform asked for something. From then on the ad platform is optimizing toward a fiction. It reports revenue nobody received, computes a ROAS from it, and chases the cheapest leads because every lead is supposedly worth the same.
The plain version: a lead is worth nothing until the person pays. A booked consult is worth nothing until the person pays. The conversion that carries real value is the membership payment, and its value is what cleared. Send that, with the right amount attached, and the platform is finally weighing clicks by money.
Where it misleads: a value is not a payment. The platform will happily accept a large number on a booking or a trial, and the ROAS it reports will rise the moment you send it, with no member added. Read the platform’s revenue as the sum of what you told it, and read offline conversion tracking for how a real payment gets back to the platform at all.
Where this sits in Adsu
Booked, showed and paid go back to Google as offline conversions and to Meta through the Conversions API. Adsu sends the stages that matter, appointment booked, appointment showed and membership paid, back into your ad platforms as the wins to optimize for, so the platform’s own targeting goes looking for more people like the ones who paid rather than anyone who will fill in a form. Adsu counts verified stages only: if a stage cannot be verified, it is not counted. Every report is one line per campaign per location.
Because each stage goes back as itself, the platform can tell a form from a booking and a booking from a payment, which is what conversion value was meant to let it do. Adsu credits the last eligible touch inside the 30 days before the payment. How the feedback loop plays out month to month is on its own page.
Questions, answered.
None that pretends to be revenue. A lead has not paid, so a value on it is a guess, and the platform will optimize toward the guess. If the tools you use insist on a number, keep the lead at $0 and send the payment as its own conversion carrying what actually cleared, as in the example above. Then the platform’s revenue and ROAS mean something.
ROAS is conversion value divided by ad spend, computed inside the platform from whatever values it was sent. Attach a made-up value to every form and the ROAS in your dashboard is made up too. Attach the cleared payment to the paid stage and the same ROAS starts to describe money. Adsu’s ROAS is computed from the billing system instead, so it does not depend on the value anyone attached.
A bidding strategy that tells the platform to maximize the total conversion value it can buy for your budget, or to hit a target return on that value, instead of chasing the largest number of conversions. It only works when the values are real. Feed it a flat number per lead and it buys leads; feed it cleared payments and it buys members.
Related
Offline conversion tracking is sending an ad platform a conversion that happened off your website: a consult, a show, a payment. The front-desk join.
Feedback loopThe feedback loop is Adsu’s name for sending verified outcomes, booked, showed and paid, back to the ad platforms as the wins to optimize for.
ROASROAS, return on ad spend, is the revenue a campaign produced divided by what it cost. The gym formula, an example, and Adsu’s verified-payment rule.
Conversion trackingConversion tracking is telling an ad platform that something worth paying for happened, so it can credit the ad and find more of it. What a gym counts.
The proof
- Net members
- +21
- Lifetime value added
- $67,000+
Bobby & Maria Gasdia, Big Day Fitness, 2 locations
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