A billing model change is coming for a subset of Google Ads advertisers that will directly affect how their budgets are paced and spent. Google Ads has notified advertisers that Demand Gen campaigns using view-through conversion (VTC) optimization on Discover will move from cost-per-click (CPC) billing to cost-per-thousand impressions (CPM) beginning July 15.
Scope of the Change
The change affects a limited number of advertisers and applies only to campaigns with VTC optimization enabled. Advertisers not using VTC optimization will see no change. The transition will happen automatically, with no action required from advertisers.
The billing shift is specific to the Discover placement. Demand Gen campaigns already operate under a mixed billing framework across Google's surfaces. Demand Gen uses mixed billing, similar to Performance Max, including CPM and CPC bidding, which varies based on the Google surface and ad format.
Why Google Is Making the Change
View-through conversions measure actions taken after a user sees an ad but does not click it. Because impressions play a central role in generating those conversions, Google argues that CPM billing more accurately reflects the value being delivered. Google also states the change will allow its systems to optimize more effectively for view-through conversion goals.
When enabled, VTC optimization lets Demand Gen campaigns optimize toward view-through conversions on YouTube. A view-through conversion happens when a user sees an ad, doesn't click, but later converts. Google confirmed VTC optimization for Demand Gen in its April 2026 "Demand Gen Drop" blog post. In Google Ads, advertisers can enable Demand Gen campaigns to optimize toward view-through conversions for YouTube. The extension of VTC billing logic to the Discover placement on July 15 follows from that earlier rollout.
How the Existing Billing Framework Applies
The Google Ads Help documentation on VTC optimization confirms that VTC optimization campaigns are billed as described in the Demand Gen Frequently Asked Questions. The Demand Gen FAQ, published by Google on the Google Ads Help center, states that Demand Gen will use mixed billing, including CPM and CPC bidding. The July 15 change brings VTC-optimized Discover campaigns into alignment with this broader mixed-billing structure by moving them off CPC.
Opt-Out Option
Advertisers who do not want to transition to CPM billing can opt out by disabling view-through conversion optimization in campaign settings. Doing so will prevent the billing change from taking effect for those campaigns.
Implications for Campaign Management
For advertisers running VTC-optimized Demand Gen campaigns on Discover, the shift from CPC to CPM changes the fundamental unit of spend. Under CPC billing, budgets are consumed when users click. Under CPM, budgets are consumed as impressions accumulate, regardless of whether any click occurs. Campaigns optimized for view-through conversions may see differences in spend pacing, impression volume, and reporting metrics once billing transitions from clicks to impressions. Advertisers should audit their affected campaigns before July 15, review daily budget caps against expected impression volume, and confirm that their conversion windows and attribution settings are configured to accurately capture view-through activity under the new billing model.
Google has not published a standalone announcement for this billing change. The notification was shared directly with affected advertiser accounts.
