You can choose to pay for conversions, rather than clicks or interactions, in a Display campaign. Paying for conversions means you only pay when customers convert on your website or app.
Keep in mind that the pay for conversions feature is only available to Google Ads accounts that meet our requirements. In this article, you’ll learn how to set up pay for conversions for Display campaigns.
How it works
Pay for conversions uses the same bidding algorithm as when you pay for clicks or interactions.
- Pay for conversions works with the Target CPA bidding strategy. Rather than clicks or interactions, you’re billed for the conversions that you receive at your Target CPA.
- You won't be charged for impressions, interactions, or clicks leading to the conversions.
- You'll be charged based on CPA at impression time.
- Pay for conversions doesn’t work with shared budgets.
Before you begin
Although Google Ads may show you that you can use pay for conversions, your account may not meet the eligibility requirements. Some common reasons why your account may be ineligible include:
Conversion action isn’t eligible
To use pay for conversions, exclude the “Store visits” conversion action from your conversion reporting:
- In your Google Ads account, click the Goals icon .
- Click the Conversions drop down in the section menu.
- Click Summary.
- Click the name of the conversion action that you want to edit.
- Click Edit settings.
- Click Include in “Conversions”.
- Uncheck the box to exclude the conversion action in the “Conversions” column.
- Click Save, and then click Done. The conversion action should now show as “No” under the “‘Include in ‘Conversions’” column.
You can’t use pay for conversions if you have a conversion delay (the time between a click and a conversion) of more than 7 days.
If you've set up conversion tracking, you can use conversion delay reports to understand how long it takes customers who view your ads to complete a conversion. Use the following steps to access conversion delay reports:
- In your Google Ads account, click the Campaigns icon .
- In the section menu, click Campaigns, Ad groups, or Keywords.
- Check that the date range for your report ends at least 30 days from the campaign start date (or longer, if you have a longer conversion window), and make sure the report has complete conversion data. To change the date range, use the date range selector in the upper right corner of the page.
- Click the segment icon , then select Conversions > Days to conversion. This segments the conversion columns in your report into up to 19 rows.
Ineligible for undisclosed reasons
It’s possible that your account can be ineligible for pay for conversions due to undisclosed reasons in Google Ads. In this case, you’ll receive an error message in Google Ads that says, “Your account is ineligible to pay for conversions.”
Your account must have more than 100 conversions in the last 30 days to use pay for conversions. You’ll also need 90% of your conversions to occur within less than 7 days after someone clicks your ad. If it often takes customers more than a week to convert after clicking your ad, then you won’t be able to use pay for conversions.
Limit on CPA
Pay for conversions uses more flexible budgeting rules because the number of conversions in a given day varies more than the number of clicks. As a result, if you pay for conversions, your daily spend may exceed your average daily budget by more than 2 times. This gives Smart Bidding room to optimize better across your campaigns.
The initial monthly budget of a campaign that uses pay for conversions is based on the average daily budget that the campaign starts the month with multiplied by 30.4. If the average daily budget is changed during the month, this monthly budget no longer applies and will be replaced with a new budget based on the remaining days in the month.
You can’t change a day’s budget after it has passed. If you change a day’s budget during that day, your spend on that day will adjust to the budget. If the new budget is lower than the previous one, your ads will stop serving for that day and resume the following day following the new budget.
Say your average daily budget starts March at $100 USD. This means your monthly budget starts at $3,040 USD (100 x 30.4). After a week you decide to lower the budget to $75 USD. On the 8th, your earlier budget no longer applies and you’re set with a new budget for the remaining 24 days of March that totals $1,800 USD (75 x 24). For the last week, you decide to raise the average daily budget to $150 USD. On day 25, your earlier budget no longer applies and you’re set with a new budget for the remaining 7 days of March that totals $1,050 USD (150 x 7). Lastly, you set the average daily budget to $100 USD effective on April 1. This sets your April monthly budget to start at $3,040 USD, but has no effect on the March budget currently in place.
Over the course of March, your spend may have looked like this:
$700 USD ($100 USD for 7 days) +
$1,275 USD ($75 USD for 17 days) +
$1,050 USD ($150 USD for 7 days) =
$3,025 USD total for the month
- In your Google Ads account, click the Campaigns icon .
- Click the Campaigns drop down in the section menu.
- Click Campaigns.
- Click the plus button , then select + New campaign.
- Choose Sales, Leads, Website traffic, or Brand awareness and reach.
- If you don’t have a goal in mind, you can also select Create a campaign without a goal’s guidance.
- Select Display as the campaign type.
- Provide the URL for your business’ website.
- Enter a name for your campaign.
- Click Continue.
- In the “Bidding” section, select Conversions as your main bidding goal.
- Select Automatically maximize conversions, then check the box next to "Set a target cost per action".
- Set your Target CPA.
- Under “Pay for”, select Conversions.
- When you’re finished, click Create campaign.