Google updates Demand Gen view-through conversion optimization

Google is changing how view-through conversion (VTC) optimization works in Demand Gen campaigns, expanding support to more inventory while shifting optimization to focus exclusively on video assets.

The update also changes the default campaign settings and billing model for Display video ads.

What’s happening. Over the coming months, Google will roll out three major changes to VTC optimization for Demand Gen campaigns.

First, VTC bidding will become video-only. While image asset view-through conversions will still be reported as secondary conversions in existing campaigns, they will no longer be eligible for bidding or appear in the primary Conversions column.

Second, VTC optimization will be enabled by default for all new Demand Gen campaigns. Advertisers creating new campaigns will need to manually opt out if they don’t want to use the feature. Existing campaigns will retain their current settings and won’t automatically opt in.

Third, Google is expanding VTC optimization beyond YouTube and Discover Feed to include the Google Display Network.

Billing changes. As part of the Display expansion, Google is changing how video ads are billed.

Video assets served on Display will move from cost-per-click (CPC) to cost-per-thousand impressions (CPM) billing. Google says this change applies to all Display video assets in Demand Gen, regardless of whether advertisers choose to use VTC optimization.

Why we care. Advertisers relying on image-heavy campaigns will lose VTC bidding for those assets, while those using video should review how the shift to CPM billing could affect campaign costs and performance. The fact that VTC optimization will be enabled by default for new campaigns also means advertisers should verify campaign settings during setup rather than assuming the feature is disabled.

Bottom line. Google is repositioning view-through conversion optimization as a video-first feature in Demand Gen, while expanding its reach across Display and making it the default optimization setting for new campaigns.

First spotted. The update was shared by Paid Search expert Arpan Banerjee who shared the comms he received on LinkedIn.