Google Ads has rolled out a new feature for Performance Max campaigns: the New Customer Value mode. This update aims to help advertisers maximize the value of new customer acquisitions.
Key Features of New Customer Value Mode
Availability: Only available with purchase conversion goals in Performance Max campaigns.
Smart Bidding Integration: The system considers the value of new customers and adjusts bids accordingly.
Predictive Bidding: By predicting future conversions, Smart Bidding helps maximize total conversion value, including the additional value specified for new customers.
Flexible Valuation: Advertisers can set their own new customer value or use the recommended default value if unsure.
Higher Bidding for New Customers: This mode allows advertisers to bid higher for new customers compared to existing ones.
How It Works
- The New Customer Value Mode works in conjunction with value-based bidding strategies.
- Advertisers can specify an additional value for new customers, allowing the system to bid more aggressively to acquire them.
- Smart Bidding uses this information to optimize bids, aiming to maximize overall conversion value while considering the higher value of new customers.
Requirements and Best Practices
To use these features, advertisers need:
- A Performance Max campaign with a Google Merchant Center feed
- Purchase conversion goals
- Customer Match lists for targeting specific customer segments
Google recommends:
- Defining lapsed customers based on your specific customer lifecycle
- Providing accurate values for new, existing, and lapsed customers
- Allocating sufficient budget (increase by at least 20% initially)
- Continuously monitoring and refining the strategy
This new feature provides advertisers with more control over their customer acquisition strategies within Performance Max campaigns. By allowing higher bids for new customers, it offers a way to potentially increase the acquisition of valuable new customers while still optimizing for overall conversion value.
Advertisers interested in using this feature should ensure their Performance Max campaigns are set up with purchase conversion goals and consider their strategy for valuing new customers.
