Google Ads Introduces New Customer Valuation Feature

Google Ads is rolling out a new feature that enables advertisers to assign a higher bidding value to new customers who make larger purchases. According to Search Engine Watch, this update aims to provide more flexibility in bidding strategies. The feature is expected to be available in various Google Ads formats, including Search, Shopping, and Performance Max.

The new feature uses percentage multipliers to determine the extra bidding value for new customers. This approach may help advertisers prioritize valuable prospects and reconnect with existing customers. Search Engine Watch reported that the rollout also includes additional tools for customer retention and re-engagement.

The percentage multiplier feature is designed to provide a more proportional approach to valuing new customers. For instance, a retailer can apply a 20% adjustment to the bidding value, which would result in a higher extra value for larger purchases. This approach may be more effective than assigning a fixed bonus to all new customers, regardless of order size.

The choice between a percentage multiplier and a flat bonus depends on the advertiser's goals and assumptions about customer value. If the advertiser assumes that future value rises with order size, a percentage multiplier may be more suitable. On the other hand, a flat bonus may be more appropriate if the advertiser values each new customer equally.

Google's reporting definition states that the additional new-customer value can be included in the conversion value used for optimization. However, it is essential to distinguish between adjusted value and sales revenue to ensure accurate reporting. Advertisers should review their reporting settings to ensure they are taking advantage of this new feature.

In addition to the new customer valuation feature, Google is also extending its New Customer High Value Mode to Shopping. This mode prioritizes prospects that resemble valuable existing customers while maintaining ordinary campaign reach. Furthermore, retention goals are being rolled out more broadly to Performance Max, Search, and Shopping, providing advertisers with more tools to re-engage with customers.

To take advantage of these new features, advertisers must meet certain setup requirements. For example, they need to have a minimum number of active customers on their list. Advertisers should review their customer lists and settings before launching new campaigns or adjusting their bidding strategies.