Advertising Glossary
VO

Value Optimization

What is VO?

Value Optimization is a Meta bid strategy that optimizes ad delivery to maximize the total purchase value (revenue) rather than the number of conversions. Instead of finding the most people likely to purchase (standard conversion optimization), Meta finds people likely to make higher-value purchases. This strategy uses the "value" parameter passed with Purchase events to train a machine learning model that predicts each user's expected purchase value. Value Optimization is ideal for businesses where customer purchase amounts vary significantly and maximizing revenue matters more than maximizing order count. It requires at least 100 purchases per week and proper value tracking via Pixel or CAPI.

Example

An online furniture store gets 200 purchases/week with order values ranging from $50 to $2,000. With standard conversion optimization, Meta maximizes purchase count, delivering 200 purchases at $150 average order value ($30,000 revenue). Switching to Value Optimization, Meta delivers 160 purchases but at $220 average order value ($35,200 revenue), 17% more revenue despite 20% fewer orders, with a higher ROAS.

Industry Benchmarks

Minimum Purchase Volume100/week

Required to enable VO

Revenue Lift vs Standard10% – 30%

For variable AOV businesses

Order Volume Impact10% – 25% fewer

Fewer but higher-value orders

Best ForAOV variance > 2x

When cheapest order is < 50% of most expensive

Benchmarks are approximate averages and vary by industry, targeting, season, and geography.

Optimization Tips

  1. 1

    Only enable Value Optimization if you pass accurate purchase values with every Purchase event, incorrect values will misguide the algorithm.

  2. 2

    Ensure you have at least 100 purchases per week before switching, below this threshold, Meta does not have enough data to predict value.

  3. 3

    Set a Minimum ROAS target to prevent Meta from chasing high-value purchases at unsustainable ad costs.

  4. 4

    Compare results using total revenue and ROAS, not conversion count. Value Optimization intentionally reduces volume to increase value.

Frequently Asked Questions About VO

Track Your VO in Real Time

Adship gives you a unified dashboard to monitor VO, optimize campaigns, and improve performance across Meta and TikTok.