Target CPA

If your goal is defined by conversions, consider using Google Smart Bidding. The system will automatically evaluate your bids. One of these strategies is called target cost-per-action tCPA.

The strategy aims to optimize your ad for conversions. Using it, Google will automatically adjust your cost-per-click (CPC) based on the cost-per-action (CPA) you choose. However, this is only indicative, so some conversions may cost you more, others less.

This way of bidding is very simple, as soon as you realize the value of your acquisitions. CPA is the amount you can afford to spend on one customer. Google Ads will focus on converting users at a certain acquisition cost.

Bids for your campaigns will be set automatically based on your CPA. Some conversions may cost more than others to offset your acquisition costs. With this strategy, it’s also a good idea to optimize conversions.

target cpa

If you plan to use tCPA, plan the first two weeks of the month as a learning phase. Set your tCPA slightly higher than your average CPA recently, or use tCPA recommended by Google to allow Google to find a gap, then slowly lower it to your target CPA over time.

To enable this strategy, it’s recommended to achieve an optimal 50-60 conversions in your campaign in the last 30 days. Google says the minimum number is 15, but with such a small number of conversions, but we don’t recommend to turn this strategy at this low number.

For example, problems can occur if you set a target amount that is too low, so you may lose clicks that could lead to conversions, leading to a lower total number of conversions.

About the Author:

Juraj Bence
Account manager of Bluewinston & CCS Shopping in EU ( I'm the guy responsible for the most effective PPC tool to create product text and Smart Shopping campaigns for Google Search.) Contact me @ bence@bluewinston.com