The conversion action can be used as the Goal in a maximize conversion value Bidding strategy campaign. This approach is often known as value-based bidding, or more specifically, predictive value-based bidding. For details on Google Ads setup check out "
Import & Bid to Conversion Events." Also, this technical
paper explains how the predictive value is determined.
The conversion action's value is essentially a predictive dollar value which is defaulted at $100 but can modified in the pipeline settings to suit your own business. The value you set (default = $100) is the dollar value that will be associated with users in your top predictive segment. Here is a simplified
diagram of how this plays out.
Please reach out with any additional questions. Have a great day!
Tyrone S.