Starting August 17th, Google is going to make you and me pay more for the same leads we’re already getting.
Same phone calls. Same customers. We’ll just pay more for every one of them.
And Google, as usual, is dressing it up as a benefit. They say the change will deliver “more predictable performance,” like they’re doing us a favor. It might stabilize your cost per lead down the road. But let’s call it what it is. This is a price hike.
Here’s the good news. The change isn’t hard to understand, the criteria are clear cut, and if you do what I’m about to show you, you won’t have any issues.
Below I’ll walk through:
- What’s changing
- How to know if you’re affected
- How to fix it
By the end, you’ll know more about this than most of your competitors.
First, find out if this even affects you
This isn’t hitting every account. Three things have to be true at the same time for it to affect yours. Let’s go through them one by one.
1. You’re using a Target CPA
Target CPA means target cost per acquisition. To check, go into your campaign settings and open the bidding section. If you’re using Maximize Conversions and the target box is checked with a number under it, you’re using a Target CPA.
When you run a campaign with a Target CPA, you’re telling Google what you’re willing to pay for a lead, and Google bids in a way that tries to hit that number. Sometimes it comes in higher, sometimes lower.
Important: a Target CPA is not a hard cost cap. It’s more of a strong suggestion.
2. Your campaign is limited by budget
Pull up your campaign list. If a campaign is limited, you’ll see a warning in the status column.
Limited by budget means Google could get you more leads, but it’s running out of money because your budget isn’t big enough. That’s not necessarily bad. It just means the campaign has room to scale.
3. Your cost per lead is beating your target
If your actual cost per lead is lower than the number you set, you’re outperforming your target.
If your campaign checks all three boxes, Google is going to raise your cost per lead until it lines up more closely with your target. That’s the change coming on August 17th.
Why this is a cash grab
Google says this improves stability, and that might be true. But let’s be honest.
Most small business advertisers have no idea this is coming. They’re going to suddenly find themselves paying more for leads than they did last month, and they won’t understand why.
Here’s what it looks like in practice. Say you set your Target CPA at $100 and you’ve been getting leads for $70. That $70 cost per lead will slowly climb until it sits closer to $100 once this takes effect.
For years, advertisers have treated Target CPA like a ceiling. Set it at $100 and it meant you were okay paying up to $100. After this change, Google is going to treat that number more like a goal than a ceiling.
That’s what you really need to know.
How to fix it
If this applies to you, here’s what to do. This isn’t a guarantee, but it’ll help you avoid some of the effects.
Go into your campaign, open your bid settings, and change your Target CPA to match what you’ve actually been paying. If you’ve been getting $70 leads against a $100 target, change the target to $70. That’s it.
I’d do this slowly over the next few weeks, in 20 to 25% steps. That helps smooth out any swings in performance. Once you’ve fully transitioned to the new target, you’re good to go.
Expect some fluctuation in price and performance leading up to August 17th and for a while after. But that’s all you need to do.
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