Google Ads has this new feature that lets advertisers calculate your conversion value for new customers. It says, "Select a lower target ROAS to adjust the incremental conversion value used to bid for new customers."
Andrew Lolk spotted this last week and wrote on LinkedIn, "You can now determine the conversion value for new clients by establishing what the target ROAS should be. This system will then automatically propose a suggested value."
Here is his screenshot:
Andrew added:
I believe this is a significant enhancement compared to manually entering a new customer value without considering the appropriate ROAS.I wish this could be further improved to evaluate at the auction level, adjusting based on whether it's higher or lower, at the campaign or product level, for example.
This way, it would factor in these variations. I've always felt that merely assigning a conversion value to a new customer wasn't an effective method for bidding more for new clients.
In my view, setting a lower ROAS target for new customers is the best approach.
I hope to see this feature developed and expanded in the future. Meanwhile, remember that it's available and use it to compute your new customer conversion value when employing new customer targeting in Google Ads.
Forum disucssion at LinkedIn.
