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Google Ads is now giving advertisers the option to pay for conversions when using display campaigns.

Paying for conversions, rather than clicks, means advertisers only pay when someone converts after clicking the ad.

When using pay for conversions, Google says advertisers will never pay above their target cost per action (CPA).

“Let’s say your target CPA is $10, and you drove 30 conversions over the weekend. You’ll pay exactly $300, with an actual CPA of $10. You won’t be charged for clicks or impressions.”

There is now also an option to use Smart Display campaigns with pay for conversions.

Advertisers will only have the option to pay for conversions when using Target CPA with display campaigns.

Further, advertisers will only be able to utilize the pay for conversions option if their account is eligible.

In order to be eligible to pay for conversions, the following conditions need to be met:

• Advertisers cannot bid toward offline conversion types, such as ”Import from clicks” and “Store visits.”
• The CID must have a conversion delay of fewer than 7 days.
• The account must have more than 100 conversions in the last 30 days.
• Target CPA must be less than $200.

Google notes that advertisers may also be ineligible for pay for conversions due to undisclosed reasons.

When utilizing pay for conversions, advertisers may end up spending over their daily budget by more than 2 times.

However, within a calendar month, advertisers will not spend more than their daily budget multiplied by the number of days in the month.

For more information see Google’s help document.