Google has announced the availability of conversion-based bidding for display campaigns called “Pay for conversions”.

With these new bidding options, advertisers will be charged when users convert from the ads rather than for ad clicks or impressions.

With Pay for conversions bidding, which is similar to Google search campaigns, advertisers who want to pay by conversion will set a Target CPA (cost per acquisition) in the Bidding section of campaign settings.  Google offered an example of how the pricing works, “Let’s say your target CPA is $10, and you drove 30 conversions over the weekend. You’ll pay exactly $300, with an actual CPA of $10.”

Advertisers can now select conversion-based bidding in Google Display Network

This bidding option uses the same bidding algorithm as click-based payment.  Google says, “you’ll never pay above your target cost per action.”  In the end, the goal is to try generating as many conversions as possible at the target threshold.

Your account has to have over 100 conversions in the past 30 days in order to be eligible for pay for conversions.  Not only that, the time between click and conversions have to be shorter than 7 days for at least 90 percent of those conversions.  If you’d like to see your conversion lat time data in the Google Ads UI, just segment data from the past 30 days or more by Conversions > Days to conversion.

More on Target CPA bidding by Search Engine Land

  • Target CPA bidding is most appropriate for relatively high volume campaigns promoting products or services with similar margins. The upper limit on Target CPA is $200.
  • If you get an error while trying to use pay for conversions, your account may be ineligible for “undisclosed reasons.” Google says eligibility is refreshed daily.
  • Pay for conversions does not work for conversions imported from calls or Salesforce or for cross-device conversions. It also doesn’t work with shared budgets.
  • There is also an option to use Smart Display campaigns with pay for conversions. Campaigns need to reach 50 conversions in a 30-day period to be eligible for Smart Display campaigns.

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