Google Ads is testing a ROAS-based tool that suggests conversion values to help advertisers bid smarter for new customers.

Google Ads is rolling out a feature that lets advertisers calculate conversion value for new customers based on a target return on ad spend (ROAS), automatically generating a suggested value instead of relying on manual estimates.

The update is designed for campaigns using new customer acquisition goals, where advertisers want to bid more aggressively to attract first-time buyers.

How it works. Advertisers enter their desired ROAS target for new customers, and Google Ads proposes a conversion value aligned with that goal. The system removes some of the guesswork involved in estimating how much a new customer should be worth in bidding models.

The feature doesn’t yet adjust dynamically at the auction, campaign, or product level. Advertisers still apply the value at a broader setting rather than letting the system vary bids based on context.

Why we care. Assigning the right value to a new customer is a weak spot in performance bidding. Many advertisers manually set a flat value that doesn’t always reflect profitability or long-term goals.

By tying suggested conversion values to a target ROAS, advertisers can now optimise towards a more strategy-driven bidding, potentially improving how acquisition campaigns balance growth and efficiency.

What advertisers are saying. Early reactions suggest the feature is a meaningful improvement over static manual inputs. Founder of Savvy Revenue, Andrew Lolk argues the next step would be auction-level intelligence that adjusts values depending on campaign or product performance.

What to watch. If Google expands the feature to support more granular adjustments, it could further reshape how advertisers structure acquisition strategies and value lifetime customer growth.

For now, the tool offers a more structured way to calculate new customer value.

Source: Google Ads adds ROAS-based tool