Pay for conversions is a bidding strategy for your Google Ads that does what it says: Instead of paying for clicks or impressions, you pay for conversions.
I strongly recommend testing this format as it is a low-risk way to grow your business and gather insights. During these uncertain times, paying per action is a wise way to watch your bottom line without stemming growth.
Yikes! What if you don’t meet the conversion volume requirements for high-value conversions like purchases or leads? Fear not...I will cover how to work around that.
In terms of the setup, you can use a standard display or smart display. I recommend using the Smart Display. If you do choose to use a standard display, consider turning on targeting expansion. Remember, you are only paying for conversions, so you want to reach as many potential customers as possible.
If you are eligible to use Pay for Conversions, the setup is simple. Under the campaign bidding settings, select a target cost per action and select pay for conversions.
You’re all set! It’s that simple.
Below is a workaround if you’re stuck:
Once you reach 100 conversions at the account level, you should see pay for conversions as an option within a few days. You are now ready to complete the setup of your pay for conversion display campaign. Here are the steps:
This works because Pay for Conversions will stay on that bidding strategy, even though the conversion volume falls below 100 in the last 30 days. Essentially you are only counting high volume actions as conversions to meet the requirement then turning it off so you can use the pay for conversion for the conversion action you want.
“Pay for conversions uses more flexible budgeting rules because the number of conversions in a given day varies more than the number of clicks. As a result, if you pay for conversions, your daily spend may exceed your average daily budget more than two times." Source: https://support.google.com/google-ads/answer/7528254?hl=en
At best, Pay for Conversions is an excellent zero-risk way to drive conversions cost-effectively. The worst that can happen is that you get free branding, a boatload of traffic to your website, and a better understanding of what audiences and demographics NOT to go after in other campaigns. It’s a win-win situation.
About the Expert: Garrett is a Google Guru with 10+ years experience directly managing and advising on Google campaign management for e-commerce, local search/retail, SaaS application across a wide category of verticals. Garrett loves to help customers work through different issues on Google's platforms and how to get the most value from their ad services.
If you’re interested in connecting with Garrett or speaking with another Hopps expert to improve your Google Ads, start a session now.