Google Ads Target CPA bidding is a strategy that will help you to increase the number of conversions achieved that reach the target cost per action.

Using advanced machine learning, Target CPA optimizes your bids automatically and tailors them for every auction. It is available as a strategy on just one campaign, or as a portfolio option against a range of campaigns. To get started, you will need to have set up conversion tracking on your campaign.

How It Works

By reviewing historical information from your campaign, the system will automatically select an optimal cost-per-click bid for your ad every time that it is eligible to appear. Google Ads sets the bids at a level where they will achieve an average CPA that is equivalent to your overall target over the campaign.

Let me talk you through some of the settings.

Target CPA

This means the average cost that you want to pay for a conversion. The limit that you set will influence the number of conversions that you get. If you have historical data, Google Ads will recommend a target CPA which is calculated from your actual CPA performance in the past.

Bid Limits

We don’t normally recommend setting bid limits for your Target CPA strategy, because it will limit the automatic optimization of your bids. It can also stop Google Ads from amending your bids to meet your Target CPA.

Average Target CPA

This is the cost-weighted average CPA that your strategy is optimised, taking into account your bid adjustments, and changes that you have made to the settings over time. It allows you to measure the CPA that your bid strategy is set for over specific time periods.

Pay for Conversions

When setting up your campaign, you can also choose to pay for conversions rather than clicks for Smart display campaigns.

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About Uzair Kharawala
Uzair Kharawala is the Co-Founder at SF Digital. He is a Certified Google Partner, is a Cricket fanatic and loves Photography.
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