Google Conversion Bidding and Why You Should Stop Chasing Clicks

by John Davis
Digital Stratigist

07-Stop Chasing ClicksThis week, Google announced a conversion-based bidding platform for display advertising called "pay for conversion". Released December 13th, this bidding option allows advertisers to choose to pay for conversions rather than clicks for their display campaigns. Paying for conversions means marketers only pay when someone converts on the advertiser’s web site or app.

This move by Google is the death knell for platforms still relying on CPC pricing to move display media.  Why? Google would never intentionally switch to a pay model that makes them less money. Google is like that. 

Clicks were long thought of as a leading indicator for conversions, but those days are over. Clicks often have an inverse relationship to conversions in direct response campaigns. When programmatic platforms chase inexpensive clicks, conversion rates (and your sales) go down the drain. Without the ROI to back up the spend, the viability of display media gets questioned and advertisers pull back budget. Google is following the money here.  And you should take the hint to stop focusing on clicks and start focusing on conversions.

Platforms that are unable to offer conversion-based pricing are going the way of the dinosaurs. If you're still relying on a click-centric display partner for your direct response campaign, drop us a line