Conversion Google – Google has announced its new paying method the advertisements. From the Pay per Click, it has now announced Pay for conversions’. In this method, Google has announced for the advertisers to pay for conversion based bidding rather than just paying for the impressions.
In this new bidding option, the advertisers are charged when users convert from the ads and not just click the ad and give them impressions. The advertisers that want to pay by conversions set a target cost per acquisition or CPA in the bidding sections of the campaign setting.
So, if you set an amount of $10 and get 30 conversions then you have to pay $300 only irrespective of the impressions or clicks your ad gets.
Same as the click based payment is the algorithm of bidding for pay for conversions. The goal of this method is to generate as many conversions as possible at that target threshold. Also, in the past 30 days, your account should have more than 100 conversions to be eligible to pay for the conversions.
With it, the time between the conversion and click must be shorter than 7 days for at least 90 percent for those conversions. You can check your days to conversion Google ads UI segment data.
The upper limit for the target CPA is also decided and that is $200. The pay for conversions system does not work for conversions imported from calls or for cross device conversions or for sales force.
This also will not work with the shared budgets. You can also not use the smart display campaigns with it.
To be eligible for this, the campaigns need to reach 50 conversions in 30 days. If for any reason you are not able to go ahead with the pay for conversions, your account might be not allowed to use it because of some undisclosed reasons.
But, for your sake, Google refreshes the eligibility on a daily basis. If you have some high volume campaigns, then you can go ahead with target CPA. This can be done for promoting products and services from similar margin.