Google Announces the Option to Pay for Conversions in Google Display Campaigns

Monica Pissanos - January 10, 2019

As of December 13th 2018, advertisers now have the option to pay for conversions, rather than clicks, when using Google Display Campaigns. This means that you will only be paying when customers convert on your website or app, while never paying above your target cost-per-action (CPA).

So How Does it Work?

Pay for conversions uses the same bidding algorithm as pay for clicks. You will only be billed for conversions received at the Target CPA that is set by you. As an example, if you set your Target CPA to $10 and you get 15 clicks, you will be billed for exactly $150 – and you will not be charged for any clicks or impressions that led to the conversions.

Below is a snapshot of the Pay for Conversions bidding in the Google Ads Interface:

This new option showcases Google’s continuing shift away from clicks and impressions toward more meaningful outcomes. However, there are a few factors to keep in mind before deciding to test out this new function. First and foremost, conversion tracking within the Google Ads interface will need to be set up properly. Secondly, this feature does not work for any cross-device or offline conversions such as call-based conversions or imported CRM data. Target CPA bidding and pay for conversions will be most appropriate for relatively high volume campaigns promoting products or services with similar margins.

To learn more about eligibility requirements and how to leverage this new feature within the Google Ads Interface, contact the Google Marketing Platform certified experts at MoreVisibility.

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