When you as the Google Ad Campaign Manager don't have a clear cost per conversion or cost per lead to aim for in the Google Ad Campaign, you're left with the task of trying to drive the cost per conversion down, down, down, as low as possible.
There are 2 problems with this strategy:
These are kind of just 2 angles on the same problem; you getting fewer conversions and leaving money on the table because you don't know what the true value of a lead is to your business.
The same goes for ecommerce campaigns too where you're driving sales conversions. If you're aiming to just reduce cost per conversion as low as possible, you'll eventually reduce the total volume of sales conversions coming into the campaign.
This may be okay with you, maybe you're okay with maximizing ROAS at the expensive of generating more total revenue. It's bad if you just want more total sales volume to leverage economies of scale.
Ideally, you want to identify the maximum amount you can pay per conversion and still remain profitable in your Google Ad Campaign. This will allow you to stay more competitive in the Google Ad Auction which can be the difference between success and failure.
This FREE 6 Lesson Course Shows You How to Set Up Google Ad Conversion Tracking for Lead Gen Campaigns using Google Tag Manager.