CPA Target and its Effects in the Adwords Campaign
CPA stands for Cost per Acquisition, and it’s a metric that is used by advertisers in working out the amount to pay in each conversion. It’s a great PPC metric to put into consideration, especially when you want to confirm that your campaigns are not rendering any financial loss. A PPC advertises internet models that drive traffic to the website whereby an advertiser pays the publisher when the ad is clicked.
Adwords may have numerous whistles and bells where not all are useful. A target CPA bidding allows you to decide the amount you want to pay per conversion. Adwords appear automatically to adjust your bids and try getting more conversions at or below the set price in each acquisition. Generally, the reason behind the CPA bidding is to provide the advisers in a serene way of ensuring their campaigns are driving conversions in the best way without even wasting budget on non-sensible keywords and phrases. It’s our wish that this could be simplified to allow ‘set and forget’ CPA settings. However, this can be too tranquil since all campaigns would be mandatory monitored. All the same, CPA has been witnessed in its rises and falls in quite significant percentages.
It is also vital to ensure that there are not less than 30 conversions in the previous month to avoid CPA tanking campaign performance. It would also recommend that you apply the target CPA in your whole campaign. It is also a good practice to put campaign experiments to continue controlling your running campaign.
How Target CPA Operates
CPA works in a manner that is very close to magic. For instance, Google has more than 3 billion clients that keep on searching in a day, and it can recognize their behaviors and when they can convert.
Using a target CPA maximizes Google machine that learns to direct your campaign down the path, which offers only on devices, keywords, and other signals that drive more conversions under or at your CPA.
The Relationship Between Target CPA and Conversion Volume.
Again, note that when the CPA target is lower than the normal, your campaign gets fewer conversions, and when the target is higher, the number of conversions also increases. Therefore it is a good idea to keep on considering the change in a big way regarding your CPA target and checking how they impact the overall conversion volume.
The target CPA relates dearly with the conversion volume because it makes your Adwords campaign better, but this depends on different things. For instance, turning on your target CPA to control bids is crucial if all other things have been done manually and also leaving campaigns in the hands of Google.
However, before turning on the target CPA, you should ensure that you have split tested all ads for not less than a month, have more than 30 conversions in the previous month and have extensive keywords at a campaign level. Also, ensure you have 100% Adwords experiments and finally prepare yourself for the campaign.
The Bluelight Marketing agency has more than 5 years of experience in Google Ads marketing and over 100+ successful campaigns under management, book a free consultation today and learn how we can help you.
Nick Berns is at the helm of the Bluelight agency. With 6 years of experience in digital marketing, he is passionate about growing businesses through organic and paid marketing solutions.