Have you ever thought it would be great if you could just pay for conversions rather than for PPC ad clicks? Well, Google has heard your prayers. Google recently announced conversion-based bidding for standard display campaigns and Smart Display campaigns. Read on to learn what this means and how you can implement it.
How Does It Work?
With the pay for conversions option, you will only be charged when searchers convert on your website or your app. However, to avail this option, advertisers have to use Target CPA in the Bidding section of campaign settings within their Google Display campaign. This new system uses the same bidding algorithm that’s used for click-based payment.
Key Role of Target CPA
If you select the pay for conversions option, you’ll use the Target CPA strategy. You will only be charged for conversions that happen at the Target CPA set by you. Here’s an example – if your Target CPA is $20 and you receive ten conversions in a month, you will have to pay $200. You will not have to pay for the clicks or impressions leading to those ten conversions. CPA is your target cost per action and you will never have to pay beyond that for a single conversion.
Basic Eligibility Criteria
According to PPC campaign management experts, using Target CPA bidding strategy is appropriate for high-volume campaigns that promote goods or services with comparable margins. To use pay-for-conversions option, your account must meet certain eligibility criteria. Your Google Ads account must have at least a hundred conversions in the previous thirty days. Another condition is that 90% of conversions should take place within seven days of someone clicking on your ad.
Check Conversion Lag Reports
PPC experts recommend analyzing conversion delay reports in the new Google Ads UI to determine if you meet the above eligibility requirement. Make sure the data range is set for thirty days or more. Conversion delay reports will help you understand how long it takes for prospects to complete conversion after clicking on your ads.
Where It Will Not Work
White label PPC professionals who have studied pay-for-conversions in depth point out that this option does not optimize for offline conversions. Offline conversion tracking including store visits and imports from calls can make you ineligible for pay-for-conversions. Advertisers should remove offline conversion tracking in order to qualify. At present, pay for conversions option will not work with cross-device conversions or shared budgets.
Ineligibility Due to Undisclosed Reasons
White label PPC experts have come across situations where a Google Ads account becomes ineligible due to undisclosed reasons. Eligibility is refreshed daily based on a multitude of factors, so try addressing the above issues to increase your chances of qualification. One good way of ensuring eligibility is to get a PPC management professional to look into your account.
Setting It Up
- To set up pay for conversions, the first log into your Google Ads account.
- Select Campaigns on the left side page menu. From there, select the plus icon and then click New Campaign. Choose the standard Display campaign type and then click Continue.
- Go to the Bidding section and select Target CPA for ‘Select Your Bid Strategy’.
- You should be able to see the header ‘Pay for’ – select Conversions from the drop-down menu.
- Once you’ve selected, click Save and Continue.
In Smart Display Campaigns
PPC experts also use the pay-for-conversions option in Smart Display campaigns. Smart Display campaigns use a combination of three optimization technologies – automated bidding, automated targeting and automated ad creation to effectively manage the complex variables of Google Display advertising. To qualify for using the pay for conversions option in Smart Display campaigns, advertisers need to have at least fifty conversions in the past thirty days.
For more information, consult AdWords campaign experts!