Google Ads adds Target CPC bidding to Demand Gen campaigns

In June 2025, Google Ads introduced a new bidding strategy — Target Cost-Per-Click (tCPC) — for Demand Gen campaigns. This strategy enables advertisers to automate bid management focused on click cost, while increasing the effectiveness of campaigns aimed at driving traffic.

How Target CPC works

When using Target CPC, the advertiser sets a desired average cost per click. Google then automatically adjusts bids during each auction based on various factors: device type, browser, user location, time of day, and other signals.

Some clicks may cost more than the target CPC, while others may cost less. The system strives to maintain an average CPC at the target level.

Comparison with other strategies

Unlike Target CPA (target cost per acquisition), which optimizes campaigns based on post-click user actions, Target CPC focuses on the cost of the click itself. This makes the strategy relevant for campaigns aimed at increasing traffic, rather than purely driving conversions.

Example of use

If an advertiser sets a Target CPC at $10, the Google Ads system will automatically determine bid amounts for each auction based on the likelihood of a click, with the goal of achieving an average cost of $10 per click across the campaign.

When to use Target CPC

This strategy is effective when a campaign aims to:

• Drive traffic to a website
• Maintain controlled click costs
• Automate bidding without losing budget control

It can be particularly useful for campaigns focused on raising brand awareness or promoting new products.

Technical details of implementation

Target CPC can be applied at both the campaign level and the ad group level:

• At the campaign level, the strategy applies to all ad groups by default.
• At the ad group level, you can set an individual CPC that overrides the campaign-level strategy for that group.

To activate Target CPC:

1. Select the Clicks campaign goal.
2. In the campaign settings, expand the Target cost per click section, enable it, and enter your desired average CPC.
3. If needed, you can set a separate Target CPC at the ad group level.

Market feedback

The appearance of this new strategy was noted by Google Ads expert and Search Engine Land contributor Jyll Saskin Gales. She pointed out that the launch of a click-based bidding strategy at a time when Google Ads primarily focuses on conversions is a rather unexpected move. She also raised questions about the future of this strategy alongside Manual CPC and Maximize Clicks.

Conclusion

The introduction of Target CPC in Demand Gen campaigns provides advertisers with an additional tool to drive more traffic while maintaining a controlled average click cost. This strategy is suitable for campaigns focused not only on conversions but also on overall site traffic growth.

Currently, Google has not officially announced a broad rollout of this strategy, and it is only being spotted by some advertisers in the interface. The further development and potential for widespread use of this tool remain open questions.

This article available in Ukrainian.