Google Ads Shifts Demand Gen Billing to CPM for Select Discover Campaigns
Google Ads will implement a change in its billing model for certain Demand Gen campaigns on Discover. Starting July 15, campaigns optimized for view-through conversions (VTC) will transition from cost-per-click (CPC) to cost-per-thousand impressions (CPM) billing. This adjustment affects a limited number of advertisers utilizing VTC optimization and is intended to better align billing with campaign objectives. The change will occur automatically, though advertisers have the option to opt out by disabling VTC optimization. Google states that CPM billing more accurately reflects the value delivered by view-through conversions, which measure actions after an ad is seen rather than clicked.
Google Ads is altering its billing structure for specific Demand Gen campaigns operating on Discover, effective July 15. The adjustment specifically targets campaigns that are optimized for view-through conversions (VTC), moving their billing from cost-per-click (CPC) to cost-per-thousand impressions (CPM).
This change will impact a limited number of advertisers who have VTC optimization enabled for their campaigns. Advertisers not utilizing VTC optimization will not experience any alteration to their current billing model. The transition is designed to be automatic, requiring no direct action from advertisers.
Google attributes this update to a desire to better synchronize billing practices with campaign objectives. View-through conversions track user actions taken after an ad is viewed but not clicked. The company argues that because impressions are fundamental to generating these types of conversions, CPM billing more precisely represents the value provided. Google also indicated that this shift will enable its systems to optimize more effectively for view-through conversion goals.
Advertisers who prefer not to transition to CPM billing for these campaigns have an opt-out option. Disabling view-through conversion optimization within their campaign settings will prevent the billing change from taking effect. The update was initially noted by Adsquire founder, Anthony Higman.
According to Search Engine Land, this change could influence how advertisers assess the efficiency of their Demand Gen campaigns. Campaigns optimized for view-through conversions may observe variations in spend pacing, impression volume, and reporting metrics once the billing basis shifts from clicks to impressions.
