Value-Based Bidding (VBB) is an automated bidding strategy that optimizes advertising campaigns based on the expected economic value of a conversion, rather than simply the number of completed actions. The goal is to maximize return on ad spend (ROAS) by allocating budget to users who are most likely to generate long-term economic impact.
In its traditional form, VBB requires the conversion value to be sent after the event occurs. However, in many cases, this data arrives outside the conversion window accepted by advertising platforms. Even when the data is technically available in time, it is often processed after the initial optimization phase, leading to budget waste during the most sensitive stages of the campaign.
The Predictive Alternative: Bytek’s Approach
The Bytek Prediction Platform overcomes this structural limitation by adopting a natively predictive logic, where value signals are estimated at the moment the lead is captured or the first purchase is made, and transmitted within the ad platform’s conversion window.
This is made possible by a hybrid modeling framework that combines probabilistic techniques with supervised machine learning algorithms to estimate the expected value of a user before it is manifested through an actual conversion.
Depending on the business model, the platform activates specific models:
- Action Prediction: estimates the probability that a lead will result in a high-quality conversion (e.g., contract signed, meeting booked);
- Predictive cLTV / Margin-based cLTV: forecasts long-term value from the first purchase, without waiting for a second transaction, as many standard approaches require.
The result is a reliable and timely predictive signal, passed to ad platforms as a custom conversion, and immediately usable for fully operational Value-Based Bidding strategies from the very start of the campaign.
How Value-Based Bidding Works
The process unfolds in three key steps:
- Defining action value: each conversion is weighted according to business objectives (revenue, margin, etc.);
- Optimization with Target ROAS: the ad platform aims to maximize return on ad spend based on the values received;
- Dynamic bidding: bids are automatically adjusted in real time, allocating more budget to users with high predicted value.
Thanks to the predictive signal provided by Bytek, optimization starts immediately, even in contexts where the actual value is not yet visible (e.g., a lead that converts offline, a subscription that accrues over time, a purchase with a long sales cycle).
The Benefits of Value-Based Bidding with the Bytek Prediction Platform
A data-driven approach to maximize advertising ROI by allocating budget based on each user’s expected value.
- Optimized budget from the first click: no initial downtime, no waiting for real value to trigger the algorithm.
- High economic value targeting: spend where there’s potential ROI, not just where conversions are easiest.
- Operational, not theoretical prediction: models are trained on real client datasets and validated for reliability.
- Model modularity: each strategy combines models (Action Prediction, Predictive LTV) based on business model and goals.
- Seamless integration with ad platforms: signals are synced via API in a traceable and controlled manner.
Predictive Value-Based Bidding, enabled by the Bytek Prediction Platform, represents an architectural evolution over traditional solutions. It not only anticipates decision signals, it makes them actionable the moment a user enters the funnel, whether through a first click, a lead form, or an initial cart.
This early activation is what allows teams to act intelligently and immediately in a context where every conversion matters, but not all conversions are worth the same.
