Google Ads Calculate Your Conversion Value For New Customers

02/16/26
Source: Search Engine Roundtable by barry@rustybrick.com (Barry Schwartz). Read the original article

TL;DR Summary of Google Ads’ New Feature for Calculating New Customer Conversion Value

Google Ads now allows advertisers to set a lower target ROAS to automatically calculate the incremental conversion value for new customers. This feature improves upon manually assigning new customer values by factoring in appropriate ROAS targets. While currently limited, there is potential for future enhancements to adjust values dynamically at auction or campaign levels. Advertisers should start leveraging this tool to optimize bidding for new customer acquisition.

Optimixed’s Overview: How Google Ads’ New Customer Conversion Value Feature Enhances Bidding Strategies

Introduction to the Feature

Google Ads recently introduced a valuable update that enables advertisers to calculate conversion values specifically for new customers by selecting a lower target Return on Ad Spend (ROAS). This approach helps refine bidding strategies focused on acquiring new clients, by better aligning conversion values with realistic performance goals.

Benefits Over Previous Methods

  • Automated Value Suggestion: Instead of manually entering static values for new customer conversions, the system proposes values based on the selected target ROAS.
  • More Accurate Bidding: Using a tailored ROAS target allows bids to reflect the true incremental value of new customers, improving campaign efficiency.
  • Strategic Flexibility: Advertisers can optimize bids specifically for new customer acquisition, differentiating these from existing customer goals.

Current Limitations and Future Potential

While this feature marks a significant improvement, industry experts note it could be further enhanced by enabling adjustments at the auction level or by campaign/product segments. Such advancements would allow more granular optimization based on varying performance metrics and market conditions.

Practical Takeaway

Advertisers using new customer targeting in Google Ads should utilize this new conversion value calculation to improve bidding strategies and maximize ROAS. Keeping an eye on future updates will help marketers continue to refine their approaches as the tool evolves.