Google Ads shifts Demand Gen billing to CPM for some Discover campaigns

Google is changing how it charges for certain Demand Gen campaigns on Discover, signaling a closer link between billing models and campaign optimization goals.

What happened. Google Ads has notified advertisers that Demand Gen campaigns using view-through conversion (VTC) optimization on Discover will move from cost-per-click (CPC) billing to cost-per-thousand impressions (CPM) beginning July 15th.

The change affects a limited number of advertisers and applies only to campaigns with VTC optimization enabled. Advertisers not using VTC optimization will see no change.

The transition will happen automatically, with no action required from advertisers.

Why we care. The change could alter how advertisers evaluate efficiency within Demand Gen campaigns. Campaigns optimized for view-through conversions may see differences in spend pacing, impression volume, and reporting metrics once billing transitions from clicks to impressions.

Advertisers focused primarily on click-driven performance may want to reassess whether VTC optimization remains the right fit for their objectives.

Why Google is making the change. According to Google, the update is designed to better align billing with campaign objectives.

View-through conversions measure actions taken after a user sees an ad but does not click it. Because impressions play a central role in generating those conversions, Google argues that CPM billing more accurately reflects the value being delivered.

The company also says the change will allow its systems to optimize more effectively for view-through conversion goals.

Opt-out option. Advertisers who do not want to transition to CPM billing can opt out by disabling view-through conversion optimization in campaign settings.Doing so will prevent the billing change from taking effect for those campaigns.

The bottom line. Google is tying payment more closely to the behavior its Demand Gen campaigns are designed to optimize for. For advertisers using view-through conversions, impressions—not clicks—will soon become the basis for both optimization and billing on Discover.

First spotted. The update was shared by Adsquire founder, Anthony Higman, who shared the comms he received on X.