Google Introduces Pay Per Conversion Bidding in Display Ads

Google has announced the option to choose pay per conversion as your bidding strategy for its display ads. Advertisers will be charged according to conversions from the ad rather than for ad clicks and impressions.

What’s in it for advertisers 

Pay per conversion bidding for Google display ads is similar to the target CPA (Cost Per Acquisition) bidding for search campaigns. For those who haven’t used or are not aware of the target CPA strategy, advertisers who want to pay by conversion choose this bidding strategy by entering the cost in campaign settings.

For example, according to Google, if your target CPA is $10 and you get 10 conversions during a month, you would be billed $100. You will not be charged for clicks or impressions leading to the conversions.

Google display pay per conversion bidding

To be eligible to use pay per conversions bidding strategy, here’s what you need to know:

  • If you use shared budgets, then you will be required to add a seperate budget for pay per conversion bidding. This strategy does not work with shared budgets.
  • Your ad account must have at least 100 conversions in the last 30 days in order to be eligible to use this bidding strategy.
  • The time between click and conversion must be shorter than 7 days for atleast 90 percent of those conversions. To check your conversion lag time, simply segment data from the past 30 days or more by Conversions > Days to conversion in the Google ads user interface.
  • This strategy does not work for conversions imported from calls or Salesforce or for cross-device conversions.
  • Your target CPA must be less than $200 USD (or equivalent in local currency) for your campaigns and ad groups to use pay for conversions.

If you do not meet the requirements above, then you have an option to use Smart Display campaigns with pay for conversions. However, your campaigns need to reach 50 conversions in a 30-day period to be eligible for Smart Display campaigns.

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