Every day you check the dashboard. A few clicks, even fewer conversions and a lousy phone call. You have already bet several hundred dollars without saying anything. Every day you become more nervous, receive Sri Lanka WhatsApp Number fewer clicks and waste more money. Until finally, you turn it off – Ah ! It does not work. Rest assured, this is not the story of all Google Ads campaigns. I have personally run Google Ads campaigns that show a life changing ROI of $300 to $1. But that ‘s the story of many Google Ads campaigns… There has been a push in what has been recommended (mainly by Google) in approaching your bidding strategy. Traditionally, we have been sworn to a manual bidding method based on bidding matrices considering ad position, performance, market location and trends.
This is perhaps the most recommended autobidding strategy today. Most Google Ads strategy specialists impose it on its members. But, this recommendation is usually baseless and without data to back up the suggestion. So what is target CPA bidding? Target CPA bidding optimizes your bids so you can hopefully get the most conversions for a target cost per acquisition that you set as your goal. Google explains it this way… Using historical information about your campaign and evaluating contextual signals present at auction time, Target CPA bidding automatically finds an optimal CPC bid for your ad each time it is eligible to run.
Google Ads sets these bids to achieve an average CPA equal to your target across all campaigns using this strategy. Some conversions may cost more than your target and others may cost less, but overall Google Ads will try to keep your cost per conversion equal to the target CPA you set. These CPA changes occur because your actual CPA depends on factors beyond Google’s control, such as changes to your website or ads or increased competition in ad auctions. Also, your actual conversion rate may be lower or higher than the expected conversion rate. For example, if you’ve found that it takes 15 Google Ads leads to close a deal, and therefore can pay up to $3,750 to acquire a deal, you might be willing to set your target CPA at $250.