You can choose to pay for conversions, rather than clicks, in a Display campaign. Paying for conversions means that 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 paying for clicks.
- Pay for conversions works with the Target CPA bidding strategy. Rather than clicks, you’re billed for the conversions that you receive at your Target CPA.
- You won't be charged for clicks or impressions leading to the conversions.
- You will 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. Expand a section below to see common reasons why your account may be ineligible to use pay for conversions.
Conversion action isn’t eligible
To use pay for conversions, exclude the “Import from clicks” and “Store visits” conversion actions from your conversion reporting:
- Sign into your Google Ads account.
- In the upper right-hand corner, click the tools icon
- Under "Measurement", click Conversions.
- Click the name of the conversion action that you want to edit.
- Click Edit settings.
- Click Include in "Conversions".
- Untick 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.
If you have set up conversion tracking, you can use conversion delay reports to understand how long it takes customers who see your ads to complete a conversion. Use the following steps to access conversion delay reports:
- Sign in to your Google Ads account.
- Click Campaigns, Ad groups, or Keywords in the left-hand page menu.
- Check that the date range for your report ended at least 30 days ago (more if you have a longer conversion window) to make sure that 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, select Conversions, 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 may be ineligible for pay for conversions in light of 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 no more than seven 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 more than two-fold. This gives Smart Bidding room to better optimise 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 (100 x 30.4). After a week, you decide to lower the budget to $75. On the 8th, your earlier budget no longer applies and you’re set with a new budget for the remaining 24 days of March, which totals $1,800 (75 x 24). For the last week, you decide to raise the average daily budget to $150. On the 25th, your earlier budget no longer applies and you’re set with a new budget for the remaining 7 days of March, which totals $1,050 (150 x 7). Lastly, you set the average daily budget to $100 effective on 1st April. This sets your April monthly budget to start at $3,040, but has no effect on the March budget currently in place.
Over the course of March, your spend may have looked like this:
$700 ($100 for 7 days) +
$1,275 ($75 for 17 days) +
$1,050 ($150 for 7 days) =
$3,025 total for the month
- Sign in to your Google Ads account.
- In the page menu on the left, 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 maximise conversions, then tick 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.