For lead gen, Google only knows what you tell it. Enter your close rate and average deal value, and get the per-lead value to assign your conversion action — in revenue or in profit.
Value per lead = average deal value × close rate. Assign this as the static value on your lead conversion action in Google Ads (or use it to sanity-check a tCPA). Bid to the revenue number if you report on revenue; bid to the profit number if you want the account to defend its own economics.
Ecommerce hands Google a revenue value with every conversion. Lead gen hands it a form fill worth… something. Until you tell Google what a lead is worth, every “conversion” counts the same — the tire-kicker and the six-figure contract — and smart bidding optimizes toward whichever is cheaper to find. That is usually the tire-kicker.
Value per lead = average deal value × close rate. If one lead in eight becomes a customer (12.5%) and an average customer is worth $4,500, a lead is worth $562.50 in expected revenue. Multiply by profit margin for the expected-profit version. Set this as the static value on your lead conversion action in Google Ads, and the account finally knows what it’s bidding for.
A single blended value is the right start, not the end state. The upgrade path: separate conversion actions (or values) for lead tiers — a booked call is worth more than a form fill — then offline conversion imports from your CRM so closed revenue flows back to the click that created it. Each step gives value-based bidding sharper targets. Recalculate quarterly: close rates and deal sizes drift, and a stale value quietly mis-aims the whole account.
Multiply your average deal value by your lead-to-sale close rate. A 12% close rate on a $4,500 average deal makes each lead worth $540 in expected revenue; multiply by margin if you want the profit version.
Edit your conversion action under Goals → Conversions and set "Use the same value for each conversion" to your calculated per-lead value. With values in place you can bid to value (tROAS or maximize conversion value) instead of raw conversion counts.
Either works if you're consistent. Revenue values are easier to explain and match tROAS conventions; profit values make the account defend its own economics. Pick one, apply it everywhere, and note which one your ROAS targets assume.
Revenue in, spend in, return on ad spend out — as a multiple and a percentage.
Open toolCalculatorsWork out the ROAS where a campaign stops losing money, from your real margins.
Open toolCalculatorsCheck whether a budget is on pace, and what the daily spend needs to be for the rest of the month.
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