Google Ads Tests Auto-Setting New Customer Value
▼ Summary
– Google Ads is testing automatic New Customer Value assignments in NCA campaigns without advertisers’ explicit consent.
– This change has caused unexpected reporting shifts and advertiser frustration due to unannounced implementation.
– Google Ads Liaison confirmed this is an experiment aimed at improving new customer acquisition results.
– Advertisers raised concerns about distorted revenue metrics and lack of transparency in the automatic value assignments.
– Google plans to roll out new customer reporting for all purchase conversion campaigns in upcoming quarters.
Google Ads is currently running a test that automatically assigns a New Customer Value within New Customer Acquisition campaigns, a move that has caught many advertisers off guard. This adjustment, which was implemented without prior notification or advertiser approval, has already resulted in unexpected changes to campaign reporting and has sparked concern among digital marketers.
Performance marketer Bilal Yasin first identified the shift, noting that a preset value of 200 DKK was applied to a customer without any option to remove it. He emphasized the lack of advance warning and the absence of any record in the platform’s change history, pointing to a broader issue of transparency.
The automatic assignment of customer values can significantly distort revenue reporting and campaign performance metrics, making it difficult for advertisers to accurately assess their return on investment. Yasin highlighted several key concerns, including the fact that Google cannot accurately determine the true lifetime value of a new customer. Additionally, artificially inflated revenue figures can mislead advertisers when evaluating campaign success, and many conversions continue to be labeled as “unknown,” further complicating data analysis.
Google Ads Liaison Ginny Marvin acknowledged the experiment, explaining that it aims to help advertisers improve results by increasing new customer ratios. She noted that setting the New Customer Value too low, or leaving it unset, can limit a campaign’s ability to optimize effectively.
Looking ahead, Google has announced plans to introduce new customer reporting features for all purchase conversion campaigns within the next few quarters. While the company presents this test as a method to enhance performance, advertisers remain wary of the implications. The core issue revolves around transparency and control, especially when automatic adjustments influence reported revenue without clear communication or the ability for advertisers to intervene.
(Source: Search Engine Land)
