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.
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.
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.
If you enjoyed this, you may also like: