Google Ads tests ROAS-based tool to estimate new customer value

On February 13, 2026, Google began testing a new tool within the Google Ads platform that enables advertisers to calculate the conversion value of new customers based on a target return on ad spend (ROAS). The update is designed to improve bidding accuracy in campaigns focused on acquiring new buyers. Essence of the update Advertisers can now specify their desired ROAS level for new customers, after which the system automatically suggests an appropriate conversion value. This reduces reliance on manual calculations and subjective assessments of a new customer’s value within automated bidding strategies. The tool is intended for campaigns with new customer acquisition goals, where businesses aim to invest more aggressively in first-time purchases to support long-term growth. How it works After setting a target ROAS, the Google Ads system generates a recommended conversion value aligned with the specified profitability level. This provides advertisers with a structured approach to bid formation without the need to independently forecast the economic viability of each new customer. At present, the feature does not support dynamic value adjustments at the individual auction, campaign, or product group level. The suggested value is applied at a broader account setting, without contextual variation. Practical business impact Accurately determining the value of a new customer has traditionally been a complex aspect of performance marketing. Many companies assign fixed conversion values that do not always reflect actual profitability or long-term strategic objectives. Integrating value calculation based on target ROAS allows businesses to: align bidding strategies with financial performance indicators; optimize the balance between customer base growth and cost efficiency; minimize the risks of underestimating or overestimating the value of new customers. Market reaction According to preliminary expert assessments, the new feature represents a meaningful improvement compared to static manual settings. Andrew Lolk, Founder of Savvy Revenue, noted that the next stage of development could involve implementing auction-level logic that automatically adjusts values based on the performance of specific campaigns or products. Future outlook If the functionality is expanded to include more granular segmentation and dynamic bid adjustments, the tool could significantly reshape approaches to customer acquisition strategy planning and lifetime value evaluation. For now, the new feature provides a more systematic and financially grounded method for determining the value of new customers within Google Ads campaigns. This article is available in Ukrainian.