I recently came across some notable updates from Google Ads that could impact a number of advertisers like me. From July 15, Google is making a big shift in how it charges for Demand Gen campaigns on Discover, specifically those aimed at view-through conversions (VTC). Instead of the traditional cost-per-click (CPC) model, we’ll be billed on a cost-per-thousand impressions (CPM) basis.
What happened. Google Ads informed me, along with other advertisers, that this shift will directly affect campaigns using VTC optimization. If you’re like me and use this optimization, be prepared for the billing change. This only impacts campaigns with VTC enabled, so if you’re not using it, you’re in the clear.
Luckily, no action is required on my part for this transition to take place; it’s automatic.
Why we care. For those of us focused on efficiency in Demand Gen campaigns, this switch could mean we’ll need to closely monitor changes in spend, impressions, and reporting metrics since the basis for billing is changing from clicks to impressions.
This shift in billing might prompt some of us, who primarily look for click-driven performance, to reassess if VTC optimization aligns with our goals.
Why Google is making the change. According to Google, aligning billing with campaign objectives is key. View-through conversions rely heavily on ad impressions. Thus, billing on a CPM basis could more accurately reflect the actual value generated from these campaigns.
Moreover, Google believes this shift will enhance the system’s ability to optimize for VTC goals more effectively.
Opt-out option. If the new billing structure doesn’t suit you, there’s an opt-out. Disabling VTC optimization in campaign settings will prevent this change from affecting your campaigns.
The bottom line. With Google tying payments more closely to the behaviors Demand Gen campaigns are crafted to optimize, those of us leveraging VTC will now focus on impressions rather than clicks for billing and optimization on Discover.
First spotted. This update first came to my attention through Adsquire founder, Anthony Higman, who shared details on X.
Inspired by this post on Search Engine Land.
Leave a Reply