I’ve just discovered an exciting development in the Google Ads world that’s sure to interest any advertiser looking to optimize their campaigns. Google Ads is experimenting with a new ROAS-based tool that automatically suggests conversion values, aiming to enhance how we bid for new customers without the need for manual estimates.
For those like me who are focused on campaigns that target new customer acquisition, this update is a game changer. It empowers us to bid more assertively to capture those elusive first-time buyers.
How it works. I enter my desired ROAS target for new customers, and Google Ads does the rest. It proposes a conversion value that aligns with the goal I’ve set, removing much of the guesswork that previously complicated bidding strategies.
Currently, this feature doesn’t customize at the auction, campaign, or product levels. Instead, we apply values at a broader setting; this means the system doesn’t yet allow variable bids based on different contexts.
Why we care. This new tool addresses a significant shortfall in performance bidding—assigning the correct value to new customers. Many of us have relied on flat manual values, which don’t always reflect true profitability or align with our long-term goals.
By linking conversion values to a target ROAS, the door is opened to more strategy-driven bidding, potentially enhancing our balance between growth and efficiency in acquisition campaigns.
What advertisers are saying. Initial feedback suggests this feature is a notable improvement over the static manual inputs we’ve been using. Andrew Lolk, Founder of Savvy Revenue, believes the next step could be auction-level intelligence that dynamically adjusts values based on campaign or product performance.
What to watch. If Google decides to expand this feature to support more granular adjustments, it could significantly reshape how we plan our acquisition strategies and value long-term customer growth.
For now, the tool provides a more structured approach to calculating the value of new customers.
First seen. This update was first spotted by Andrew Lolk, who shared the insight on LinkedIn.
Inspired by this post on Search Engine Land.
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