Insights  /  Paid Ads
Paid Ads

'Bid for new customers' is guessing until you upload your customers.

Ticking 'only bid for new customers' tells Google who to skip. It doesn't tell Google who your customers are. On a lead gen campaign, unless you give it a list, nothing does.

Google's new customer acquisition goal can only skip existing customers it can identify. It does that from lists you provide, a conversion tag that marks new customers, or its own auto-detection. Auto-detection only switches on if you already track Google Ads purchase conversions. So on a lead gen campaign with no customer list, 'only bid for new customers' has almost nothing to work from.

What we saw on a call

On a mentoring call, we went through a B2B SaaS's Google Search campaign. It was optimizing for sign-ups, and under customer acquisition it was set to only bid for new customers. The obvious question: had anyone uploaded a list of existing customers? Nobody on the call could say for sure. That question was really for whoever had set the campaign up.

Our point was simple: don't restrict bidding to new customers until you've told Google who your existing customers are. Otherwise you've given the campaign a rule it can't apply.

Telling Google who to skip isn't telling it who your customers are.

How Google tells new from existing

Google lists four ways to define existing customers, and they can be combined:

The catch is in that last one. Google says auto-detection only activates if you're already tracking Google Ads purchase conversions. A SaaS optimizing for sign-ups or demo requests usually isn't, and the conversion tag route has the same Purchase-only limit. And even when purchases are tracked, Google calls auto-detection the easiest option but less comprehensive, since people clear cookies or opt out, and recommends supplementing it with Customer Match.

Lead gen is exactly where this bites

Google has two main acquisition modes. Bidding higher for new customers needs a purchase conversion goal and value-based bidding. Only bidding for new customers is the one Google recommends for lead generation and strict acquisition budgets, and it works with Maximize conversions or Target CPA.

So the mode built for lead gen is the one most likely to run without auto-detection. That makes your list the whole definition of "existing customer". Skip it, and the campaign still says new customers only. It just can't tell who isn't.

Set it up properly

The same list can work twice. On another call, an advertiser had added their own brand name as a negative keyword so the campaign would only bring net-new business. A customer list gets closer to what they wanted without hiding the brand from new prospects searching for it. We cover the exclusion side in stop paying to re-acquire rejected leads.

The takeaways

  • 'Only bid for new customers' skips the customers Google can identify. Anyone it can't match counts as new.
  • Auto-detection only activates if you track Google Ads purchase conversions. A lead gen campaign often doesn't.
  • Upload a Customer Match list of existing customers before turning the goal on. At least 100 active members, ideally over 1,000.
  • Keep the list in sync, and add remarketing lists alongside it.

Common questions

How does Google Ads know who is a new customer?

Google identifies existing customers from Customer Match lists you upload, website or app remarketing lists, a new customer parameter in your conversion tag, and its own auto-detection. Anyone it can't match to those sources is treated as new.

Does the new customer acquisition goal work without a customer list?

Only partly. Google auto-detection builds an existing-customer list from up to 540 days of campaign activity and tracked purchases, but it only activates if you already track Google Ads purchase conversions. Google calls it the easiest option but less comprehensive, and recommends adding Customer Match lists.

Can I use 'only bid for new customers' on a lead generation campaign?

Yes. Google recommends New Customer Only mode for strict acquisition budgets or non-purchase goals like lead generation, and it works with Maximize conversions or Target CPA. Because auto-detection and the conversion tag parameter both need purchase conversions, a lead gen campaign relies on the lists you provide to know who to exclude.

How big does my customer list need to be?

Google requires customer lists to have at least 100 active members in at least one network to be used, and says lists with fewer than 1,000 members may weaken new customer acquisition results. You can select up to 100 lists per goal.

Which campaign types support the new customer acquisition goal?

Search, Performance Max, Shopping and Demand Gen. The value-based mode, which bids higher for new customers, needs a purchase conversion goal and Target ROAS or Maximize conversion value. New Customer Only also allows Maximize conversions and Target CPA.

Sourced from the field, checked against Google. The example comes from a mentoring call, anonymized: a B2B SaaS running Google Search for sign-ups with 'only bid for new customers' switched on, and no one on the call able to confirm a customer list had been uploaded. Detection methods, the purchase-tracking condition and 540-day window for auto-detection, the 100-list limit and the under-1,000 warning are from How customer lifecycle goals detect customer segments. The 100 active member minimum and Google's advice to supplement auto-detection with Customer Match are from Define your customer lists. That the conversion tag parameter only works with Purchase conversions is from Set up new customer acquisition parameter in your conversion tracking tag. Modes, campaign types and bidding requirements are from About customer lifecycle goals. No client data used.

Not sure Google knows who your customers are?

Book a strategy call and we'll check your customer acquisition settings with you, and whether the lists behind them actually exist.