Google clarifies value-based bidding requirements for Demand Gen campaigns
Google specifies conversion thresholds for Demand Gen value bidding, requiring 50+ conversions for advanced strategies.
Google has clarified the eligibility requirements for value-based bidding strategies in Demand Gen campaigns, establishing specific conversion thresholds that advertisers must meet before accessing maximize conversion value or target ROAS bidding options.
According to Georgi Zayakov, Senior Consultant Digital Advertising at Hutter Consult, who highlighted these requirements in a LinkedIn post, "Your campaign must have recorded at least 50 Conversions with value within the past 35 days. In addition, 10 of them should be within the past week."
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Summary
Who: Google and advertisers using Demand Gen campaigns seeking advanced bidding optimization, with insights shared by industry consultant Georgi Zayakov
What: Clarified eligibility thresholds for value-based bidding strategies requiring specific conversion volumes before accessing maximize conversion value or target ROAS options
When: Requirements are currently in effect, highlighted through recent industry discussion and Google's Help Center documentation
Where: Google Ads platform, specifically affecting Demand Gen campaigns across YouTube, Discover, and Gmail placements
Why: To ensure sufficient conversion data for machine learning algorithms to optimize effectively for value-based objectives while maintaining campaign performance standards
The requirements offer two qualification paths for advertisers. The first option mandates campaigns accumulate at least 50 conversions with value within the past 35 days, including a minimum of 10 conversions with value within the past 7 days. Alternatively, accounts must demonstrate at least 100 conversions with value across all Demand Gen campaigns within the past 35 days.
These thresholds ensure that only conversions with meaningful value contribute to eligibility criteria. According to Google's documentation, "Conversions with value means that a conversion with a value of 0 or a negative value wouldn't contribute to the eligibility criteria."
Value-based bidding encompasses two distinct optimization strategies. Maximize conversion value bidding allows advertisers to maximize total conversion value within specified budgets, while target ROAS bidding enables setting specific return on ad spend goals based on sales revenue. Both strategies represent advanced alternatives to basic conversion-focused approaches.
The implementation process requires advertisers to initially establish campaigns using maximize conversions or target CPA bidding strategies. This preliminary phase accumulates sufficient conversion data for the machine learning algorithms that power value-based optimization. According to the documentation, "You'll need to accumulate sufficient conversions with value on Demand Gen campaigns, through Max Conversions or tCPA bidding strategy first."
Campaign stability during transitions proves critical for successful implementation. Google's documentation states, "We recommend that you don't make any bid or creative changes for the first 14 days of the campaign in order to ensure stable model training for Google AI."
Target ROAS implementation requires strategic initial settings. The platform advises setting target ROAS 20% lower than historical averages to facilitate optimization. This approach allows automated systems to establish baseline performance before pursuing more aggressive return targets.
Budget considerations vary significantly between bidding strategies. For conversion-based bidding, Google recommends setting daily budgets greater than 20 times the expected CPA, while value-based bidding requires budgets exceeding 20 times the expected average conversion value divided by target ROAS.
Technical implementation demands proper Google Ads conversion tracking with conversion values. The documentation emphasizes using "Google Ads conversion tracking with conversion values" and recommends learning about "tracking transaction specific conversion values" for optimal results.
Performance evaluation relies on specialized reporting tools. According to the guidance, advertisers should "Use the bid strategy report to evaluate performance" while allowing campaigns sufficient time for data collection. The recommendation suggests campaigns run for at least three weeks to generate reliable performance insights.
The value-based bidding feature supports Google's broader strategy of enhancing advertising capabilities across its network. Demand Gen campaigns are designed to generate demand and deliver business results on Google's most visual, entertaining surfaces, spanning YouTube, Discover, and Gmail placements.
Conversion window configuration remains flexible but requires consistency during testing phases. The documentation advises, "Set your conversion window as you see fit, but don't change it throughout campaign testing if not urgently needed."
For organizations with non-traditional conversion patterns, alternative approaches exist. Zayakov noted, "If you want to game the system a bit, you can try attributing values to softer events," providing options for businesses that may not generate traditional revenue conversions.
The eligibility thresholds address fundamental challenges in automated bidding optimization. Traditional conversion-based strategies can function with minimal data points, but value-based optimization requires substantial conversion value history to identify meaningful patterns and optimize effectively.
Machine learning infrastructure supports these advanced bidding capabilities through Google's Smart Bidding technology. The system incorporates models trained on historical conversion probability data, evaluating contextual factors at auction time to determine optimal bid amounts for achieving specific value targets.
Budget allocation becomes particularly important for meeting threshold requirements efficiently. Campaigns operating with insufficient budgets may struggle to accumulate necessary conversion volumes within specified timeframes, potentially delaying access to advanced bidding strategies.
The technical specifications emphasize proper value attribution for conversion events. Businesses must ensure accurate value tracking to benefit from value-based optimization capabilities, as the system relies on this data for decision-making processes.
Integration with Demand Gen's visual advertising capabilities creates sophisticated optimization opportunities across high-engagement surfaces. These placements traditionally emphasize user engagement over immediate conversions, making value-based optimization particularly relevant for advertisers seeking comprehensive campaign performance.
Campaign managers should assess current conversion data before planning transitions to value-based bidding. Accounts lacking sufficient conversion history must focus on accumulating qualifying conversions through preliminary bidding strategies before accessing advanced options.
The distinction between campaign-level and account-level qualification provides flexibility for different organizational structures. Single campaigns can qualify independently with 50 conversions including 10 recent conversions, while account-level qualification aggregates performance across multiple Demand Gen campaigns.
Performance measurement extends beyond traditional metrics to encompass conversion value analysis. The bid strategy report enables detailed evaluation of value generation relative to advertising expenditure, providing insights for ongoing optimization efforts.
This clarification aligns with Google's recent expansion of Demand Gen capabilities, including integration with Display & Video 360 and enhanced targeting options. The platform positions Demand Gen as a strategic alternative to social media advertising, emphasizing visual storytelling across Google's owned properties.
Advanced bidding options reflect the platform's commitment to sophisticated optimization capabilities. Target CPC bidding was recently introduced for Demand Gen campaigns, expanding beyond traditional conversion-focused approaches to include click-based optimization strategies.
The requirements underscore Google's data-driven approach to advertising optimization. By establishing minimum conversion thresholds, the platform ensures automated bidding systems possess sufficient information for effective optimization decisions while maintaining campaign performance standards.
Implementation guidance emphasizes gradual transitions rather than immediate strategy changes. The 14-day stabilization period allows machine learning models to adapt to new optimization objectives without disrupting existing campaign performance patterns.
For the marketing community, these clarified requirements provide essential guidance for campaign planning and optimization strategies. Understanding threshold requirements enables better resource allocation and timeline planning for accessing advanced bidding capabilities within Demand Gen campaigns.
The specific qualification criteria help advertisers evaluate their readiness for value-based bidding implementation. This transparency enables more informed decisions about campaign structure and optimization approaches, particularly for businesses considering transitions from other advertising platforms.
Marketing professionals can leverage this information to develop comprehensive campaign strategies that account for data accumulation phases before accessing advanced optimization features. This understanding proves crucial for campaign planning and performance forecasting across extended timeframes.
Timeline
- March 3, 2025: DV360 announces granular inventory source controls for Demand Gen
- April 24, 2025: Google launches accelerated checkout for US Demand Gen campaigns
- January 2025: Target CPC bidding quietly rolled out for Demand Gen campaigns
- September 2024: Google expands Demand Gen campaigns to DV360
- April 2024: Google phases out YouTube Video Action ads for Demand Gen