Posted October 31st, 2017 by Kirti & filed under Google Ads Tips.

With Target CPA bidding strategy advertisers can shift focus on driving more conversions. Basis historical conversion data and the Target CPA specified by the advertiser, AdWords determines through its algorithm which click has more chances of converting.

What does Target CPA do?

Previously called Conversion Optimizer, this bidding option optimizes your bid to get as many conversions as possible at the Target CPA set by you. Before every auction, AdWords looks at your conversion tracking data and campaign history to find the optimal bid for a click that can be translated into a profitable conversion. So, if a click might not lead to a possible conversion then the bid is set as low and if the chances of conversion are higher then the bid is risen.

For instance, if you have set your Target CPA at $10, then you might end up paying more or less than your target bid depending on how valuable the click is. So some conversions might cost you more than what you expected.

But before you get started with assigning your campaigns with Target CPA strategy you first, have to set up a conversion tracking and define your conversion. A conversion data of at least 30 days with a minimum 30 conversions helps AdWords ascertain a winning click and manage your CPA goal optimally.

In this post, we take up the case scenarios when it is more feasible to opt for the Target CPA bidding strategy.

B2B companies

For B2B companies that are looking for getting clients on board, would be more interested in the conversions than receiving clicks that do not translate into anything substantial. The conversions goal could either be signing up for a free trial or placing a demo request or calling the business for more information. To benefit from the PPC campaigns, Target CPA bidding option seems more feasible because of its focus on whatever conversion action has been defined by the business.

The Retired Ad Rotation Options

Since September, the two options ‘Optimize for conversions’ and ‘Rotate evenly’ have been discontinued and only ‘Optimize’ and ‘Rotate indefinitely’ options have been made available. With this change while earlier you could show ads to drive more conversions, now the same will be to optimize for clicks. In such a scenario, for businesses wanting to drive focus on conversions, the automated bidding option of Target CPA will help them meet that objective.

Never attempted Automated Bidding

Automated bidding helps advertisers meet specific goals defined by businesses. For companies that haven’t yet given it a try, can start with Target CPA, as the objective of it is to help you meet the conversion goal specified. There are a couple of things to make a note of while using Target CPA, here is a post about the same.

Companies with focus on Lead Generation

If your focus is to scale up your business with n objective to generate leads or acquire customers then Target CPA bidding option should be put to practice. If you want more customers to sign up for your housing scheme or register for your online webinar or download your health app, you would not want to pay for a click received on your ad but for a conversions taken place (here your conversion is to get a customer sign up for your service).

Conclusion

Target CPA bidding strategy may not give immediate results. The beginning stage will be learning one, where the volume and conversions start building up. If you don’t see substantial results then don’t be disheartened and think of opting for an alternate strategy. Give it time to converge with your Target CPA objective and allow it to move gradually from learning stage to a stage where it delivers results.

Related Links: