Google Ads Quietly Tests Auto Setting New Customer Value

What Is Happening with Google Ads New Customer Value

Google Ads has begun automatically assigning "New Customer Values" to advertisers' New Customer Acquisition (NCA) campaigns without requiring manual input or consent. This automated approach represents a significant shift in how campaign optimization signals are configured and managed within the platform.

The New Customer Value setting has traditionally been under advertiser control, allowing marketers to define how much a new customer is worth relative to returning customers for bidding and reporting purposes. Google's new test changes this paradigm by applying algorithmic estimates when advertisers haven't configured these values themselves.

According to Search Engine Land's coverage, Google Ads Liaison Ginny Marvin confirmed the test, stating that when advertisers set the campaign value too low or don't set it at all, it "prevents proper optimization to find high-value new customers." Understanding this change is essential for maintaining accurate performance reporting and achieving optimal campaign outcomes.

For advertisers running integrated digital campaigns, understanding how these automated assignments interact with your web development and conversion tracking infrastructure becomes crucial for maintaining data consistency across platforms.

How Google's Auto-Setting Test Works

When advertisers do not configure a New Customer Value for their NCA campaigns, Google's systems now automatically assign an estimated value based on historical data and algorithmic analysis. The platform uses conversion patterns, average order values, and other signals to estimate an appropriate value for new customer conversions.

Google's guidance suggests using either the default value presented in the interface or testing their recommended equation of 2x the average order value as a starting point. This recommendation, as reported by MediaPost, indicates that Google's automatic assignments may generate values in this range to encourage more aggressive new customer acquisition.

The test has been rolling out gradually, with many advertisers discovering the change only when reviewing their campaign configurations or noticing unexpected values in their conversion tracking data. Some advertisers report being unable to remove auto-assigned values, which has raised concerns about whether this is truly optional or a mandatory change.

Key Points About the Implementation

• Values are assigned automatically when no manual configuration exists
• The system uses historical data and algorithmic estimation
• Some advertisers report being unable to remove auto-assigned values
• The feature affects Smart Bidding signals and optimization behavior

Agency and Advertiser Concerns

The response from the advertising community has been largely critical, with several significant concerns emerging:

Transparency and Control

Advertisers invest significant resources in developing data-driven strategies. Having platform-side changes applied without explicit consent undermines their ability to manage campaigns according to specific business objectives. As MediaPost reported, Bilal Yasin from Lazzaweb discovered a value of 200 DKK had been automatically applied to his campaigns without notification, and reported being unable to remove it.

Bid Rejection Issues

Kim Petersen, CEO of Geniads, found that bid configurations previously accepted by the system were now being rejected based on auto-assigned values. Extremely low values intended to track trends were being rejected with requirements for much higher minimum incremental values. This indicates the auto-assigned values are not merely informational but actively affect campaign operation.

Data Integrity

When conversion values are automatically modified, all downstream metrics including ROAS, conversion value, and attributed revenue are affected. Advertisers who have calibrated their tracking to reflect true business outcomes face challenges maintaining consistent data across platforms.

Precedent Concerns

Advertisers worry about what other changes might be applied similarly without consent or notification, raising broader questions about platform transparency and the balance between AI automation and advertiser control.

Impact on Smart Bidding and Campaign Performance

The automatic assignment of New Customer Values has direct implications for Smart Bidding strategies that rely on conversion value signals. Understanding how Google's AI-driven automation affects your bidding strategy is essential for maintaining control over campaign performance.

Target ROAS Bidding

For advertisers using Target ROAS with NCA campaigns, auto-assigned values can create mismatches between actual business value and algorithmic targets. The system may bid more aggressively to achieve conversions that appear more valuable than they truly are, potentially increasing costs per acquisition even as reported metrics appear favorable.

Performance Max Campaigns

These automated campaign types rely heavily on conversion value signals for optimization. Auto-assigned values may cause the AI to allocate more budget toward new customer acquisition than advertisers intended, with the black-box nature of Performance Max making it difficult to isolate exactly how these assignments affect behavior. Leveraging AI automation services can help you maintain better oversight of these AI-driven optimizations.

Data Consistency Issues

Advertisers with tracking systems reporting actual order values face discrepancies when Google applies automatic multipliers. This complicates cross-platform reporting and attribution analysis, particularly for advertisers who have built reporting models around specific conversion value configurations.

Competitive Analysis Challenges

Comparing campaign performance across accounts or over time becomes problematic when conversion values are automatically modified. What appears to be improved ROAS may simply be an artifact of value inflation rather than genuine performance improvement.

What Advertisers Should Do Now

Immediate Steps

1. Review all NCA campaigns to identify whether auto-assigned values have been applied
2. Check conversion settings in Google Ads to see current New Customer Value configurations
3. Document any auto-assigned values and their impact on performance metrics

Proactive Configuration

If you haven't already configured New Customer Values, calculate appropriate values using your own data:

• Use customer lifetime value data if available
• Consider average order value multiples (start with 2x as Google suggests)
• Align with strategic priorities for new customer acquisition

For advertisers who want to maintain precise control over their PPC campaigns, proactively configuring these values before auto-assignment occurs is recommended.

Maintain Data Integrity

• Keep separate tracking systems that use actual conversion values
• Compare Google Ads reported metrics against internal data
• Flag discrepancies for analysis and potential Google support escalation

Ongoing Monitoring

• Track cost per new customer acquisition before and after changes
• Monitor conversion volume for new versus returning customers
• Watch for unexpected bid rejections or campaign behavior changes

The Bottom Line

Google Ads' automatic New Customer Value assignment represents a significant development in platform automation. While the stated goal of helping advertisers achieve better results is reasonable, the lack of transparency and opt-out mechanisms has created concern in the advertising community.

Success in managing this change requires:

• Staying informed about platform developments and their impact on your accounts
• Maintaining data integrity through independent tracking systems
• Making strategic decisions about whether to accept automated assignments or use custom values based on your own data

As Google continues to develop automated capabilities, advertisers who balance platform automation with strategic control will be best positioned to achieve their performance objectives. Pairing your paid advertising efforts with a comprehensive SEO strategy can help ensure sustainable growth regardless of platform-specific changes.

The key is proactive management rather than reactive adjustment to platform changes. By understanding how these automated systems work and maintaining control over your core data inputs, you can navigate this evolving landscape while keeping your business objectives front and center.

Sources

1. Search Engine Land: Google Ads quietly tests auto-setting "New Customer Value" - Primary source for official Google response from Ginny Marvin
2. MediaPost: Google Tests 'Customer Values' For Campaigns, Agencies Push Back - Agency concerns and advertiser reactions
3. Google Ads Help: Highlights of 2025 - Official documentation on customer acquisition features
4. iTech Manthra: Google Ads Quietly Tests Auto-Setting New Customer Value - Detailed analysis of implications for Smart Bidding