Advertisers can now pay for conversions in Google Ads

Google yesterday introduced a new price model on Google Ads. Advertisers are now able to pay for conversions in display campaigns instead of paying for impressions or for clicks.

Starting yesterday, advertisers can choose to pay for conversions, rather than clicks, when using Display campaigns. Brent Besson, Product Manager of Google Ads, at Google, wrote that "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)."

How to pay for conversions?

If an advertiser has a target CPA of $10, and there are 30 conversions over the weekend, the spend will be exactly $300, with an actual CPA of $10. Advertisers won’t be charged for clicks or impressions.

Google says the option to pay for conversions is only available when advertisers use Target CPA with Display campaigns.

Pay for conversions doesn’t work with shared budgets, for offline conversions, conversions from Google Ads Conversion Import, or cross-device conversions.

Requirements to pay for conversions

The account must have more than 100 conversions in the last 30 days to use pay for conversions. Advertisers also need that 90% of the conversions to occur within less than 7 days after someone clicks in the ad.