Google Ads is now giving advertisers the option to pay for conversions when using display campaigns. Paying for conversions, rather than clicks, means advertisers only pay when someone converts after clicking the ad. When using pay for conversions, Google says advertisers will never pay above their target cost per action (CPA). Brent Besson, Product Manager of Google Ads, at Google, “paying for conversions means only pay when someone converts on the website or app – and advertisers will never pay above the target cost per action (CPA).” “Let’s say your target CPA is $10, and you drove 30 conversions over the weekend,” he wrote. “You’ll pay exactly $300, with an actual CPA of $10. You won’t be charged for clicks or impressions.”
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There is now also an option to use Smart Display campaigns with pay for conversions. Advertisers will only have the option to pay for conversions when using Target CPA with display campaigns. Further, advertisers will only be able to utilize the pay for conversions option if their account is eligible.

Requirements to pay for conversions:

  • Advertisers cannot bid toward offline conversion types, such as ‘Google Ads Conversion Import’, or ‘cross-device conversions’
  • Pay for conversions doesn’t work with shared budgets
  • CID has a conversion delay of fewer than 7 days
  • The account must have more than 100 conversions in the last 30 days
  • Target CPA must be less than $200

Set up Pay for Conversions:

  • Sign in to your Google Ads account
  • On the page menu on the left, click Campaigns
  • Click the plus button, and then select New campaign
  • Select Display Network
  • Choose Drive action goals
  • Select Create a Smart display campaign
  • Click Continue
  • In the ‘Bidding’ section, find the header ‘Pay for’, and select Conversions
  • Click Save and continue

Set up Pay for Conversions:

  • Sign in to your Google Ads account
  • On the page menu on the left, click Campaigns
  • Click the plus button, and then select New campaign
  • Select Display Network
  • Choose Drive action goals
  • Select Create a Smart display campaign
  • Click Continue
  • In the ‘Bidding’ section, find the header ‘Pay for’, and select Conversions
  • Click Save and continue
It is also possible that advertisers account can be ineligible for Pay for conversions due to undisclosed reasons in Google Ads. If advertiser, pay for conversions their daily spend may end up spending over their daily budget by more than 2 times. This gives Smart Bidding room to improve better across your campaigns. Within a calendar month, advertisers won’t spend more than their daily budget multiplied by the number of days in a month.