Wondering when you need to adjust your target CPA bid in Google Ads? In summary, when the campaigns are meeting your projected number of conversions beneath the target CPA for a minimum of two weeks, you can lessen it.
In the blog post, let’s look at when you need to change your target CPA bid in Google Ads.
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When To Lower Your CPA Bids
Only reduce your CPA bids when:
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Get my plan →- Your CPA hasn’t crossed your target CPA for a minimum of two weeks
- Your conversions have been consistent for a minimum of two weeks
Why Two Weeks?
There’s no hard and fast rule, really. But this is the time frame Google Ads requires to tweak its optimisation automation strategies to the CPA adjustments you made.
Furthermore, the number of conversions is significant. When your campaigns get roughly 100 per day, consider changing things around the following week.
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How Much To Decrease It By
This is subject to the difference between your target CPA and actual CPA. Let’s say your target CPA is £30 and your actual is £20, reduce the target to roughly £23 or £25.
To begin with, and for peace of mind, avoid decreasing this by more than 25%.
Top tip: If reducing the CPA impacts the conversion volume unfavourably the following day, don’t let it bother you too much. Leave it for a couple of days before making any changes to the campaign.
When You Need To Change The Target CPA
Let’s say you’re using smart bidding at £1, and your manual CPC is £6. What should your target CPC cost? When you run smart bids such as Target CPA, Target ROAS or Max conversions, Google wants to get the conversions at any cost.
So, you may find your clicks are incredibly high – perhaps £6. As mentioned earlier, CPC is a vanity metric. Avoid going for this and thinking, “Oh, it’s too expensive, I’m paying six times the price.” What’s more, you might be earning six times more from those clicks.
Look at the conversion rate, the conversion data, and not just the CPC. If you receive enough conversion data, say 40 or 50 in the account or campaigns, switch over to the Target CPA. Then it won’t matter if Google charges £10, as it’ll get you that lead at your target cost.
Written by Uzair Kharawala
Partner at SF Digital Studios, a Google Premier Partner agency. Uzair has been helping businesses grow with Google Ads since 2002 and teaches it every week on YouTube.
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