Google Ads is testing a new tool that suggests a conversion value for new customers based on a target return on ad spend (ROAS). Instead of relying on a manual estimate of what a first-time buyer is worth, advertisers enter a ROAS target and Google proposes a value aligned to that goal.

This is aimed at accounts running new customer acquisition objectives, where you typically want to bid more assertively for first-time purchasers while still protecting profitability.

What Google has added

The feature helps advertisers calculate a conversion value for “new customer” actions using a ROAS target. Practically, it shifts value setting from “best guess” to a more structured input tied to the financial outcome the business wants.

How it works in the account

• You set a target ROAS for new customer acquisition.
• Google Ads generates a suggested conversion value for a new customer conversion based on that target.
• You apply that value within your new customer acquisition setup, rather than manually choosing a flat number.

At this stage, the tool does not automatically vary that value by auction context, campaign, product, or audience. The value is applied more broadly, which means it’s still a planning and configuration lever rather than real-time decisioning at the bid level.

Why this matters commercially

For many businesses, valuing new customers properly is one of the weakest points in performance bidding. If the value is too low, you under-invest and lose share to competitors. If it’s too high, you can hit volume targets while quietly eroding margin.

By linking the conversion value to a ROAS target, this update supports more disciplined acquisition:

• Clearer guardrails for growth spend: A ROAS target forces the conversation back to what the business can afford to pay for a first-time buyer.
• More consistent bidding behaviour: When the value is set more credibly, automated bidding has a better chance of prioritising the right opportunities.
• Better alignment across channels and teams: A stated ROAS target can be easier to align on than a single arbitrary “new customer value” figure.

It won’t replace proper customer economics (repeat rate, gross margin, payback window), but it does reduce the likelihood of setting values that don’t match commercial reality.

Impact on performance and acquisition systems

If you’re running Performance Max, Search, or Shopping campaigns with a new customer focus, the conversion value you assign is a key input into how Google’s bidding system prioritises auctions. A better method for setting that value can improve the balance between:

• Acquisition volume (bringing in enough new customers), and
• Efficiency (not paying more than the business can sustain).

For growth systems, the practical win is operational: teams spend less time debating a single number and more time improving the inputs that actually move results—offer, landing page conversion rate, feed quality, and the new vs returning customer mix.

What decision-makers should pay attention to

1) Your ROAS target needs to reflect real unit economics

A ROAS target that ignores margin, shipping, refunds, and the payback period will produce a “correct” conversion value for the wrong commercial outcome. Treat this as a finance-aligned setting, not a media preference.

2) New customer measurement must be trustworthy

This feature is only as good as your ability to identify a new customer. Ensure your new customer definition and tracking are consistent (including across devices where possible), otherwise the bidding model will optimise against noisy signals.

3) Expect account-level simplicity, not granular control (yet)

Because the value doesn’t adjust by auction, product, or campaign context, you’ll still need to manage structure and reporting carefully. Watch performance by category and margin profile so the same “new customer value” isn’t pushing spend into low-quality growth.

For more marketing and growth insights like this, read more on our blog.