If you have a business that enlists the help of a Florida online marketing company, chances are the end goal is conversion generation at a profitable cost per acquisition. Luckily, AdWords has several smart bidding strategies, including target CPA bidding.
Previously known as AdWords Conversion Optimizer, target CPA bidding is a SEM platform offered by Google that lets marketers acquire the most conversions possible at a defined target cost per acquisition.
Think of target CPA as the average amount you would like to pay for a conversion. Whatever you chose to set your target CPA can ultimately impact the total number of conversions you get. For example, if you set a target that is too low, you may lose clicks that would have ended in conversions, therefore decreasing the total amount of conversions.
For campaigns with historical conversion data, AdWords will suggest a target CPA based on your actual CPA performance from the last few weeks. When the target CPA is formulated, performance from the last few days will be excluded in order to account for conversions that take longer than a day to complete.
This AdWords Smart Bidding strategy works by setting bids in order to get as many conversions as possible at the chosen target CPA. By using machine learning, it is able to automatically optimize bids for every auction.
Target CPA bidding automatically finds the best CPC bid for your ad by drawing on historical data. While some conversions may cost more than your target and some may cost less, AdWords will generally try to keep your cost per conversion within the range of your target CPA. Any changes in CPA are dependent on factors outside of Google, such as an increase in ad auction competition, or changes to your website.
Basically, AdWords sets these bids to get an average CPA equal to your target across all campaigns. This strategy relies on real-time signals, such as location, browser, and remarking lists, in order to adjust bids and help improve your performance at every ad auction.
Now that you understand how target CPA bidding works, you need to get started on setting up it up for yourself. Start by doing the following:
There are countless benefits of using target CPA bidding, some of which include:
Regardless of whether or not you are an up-and-coming startup or an enterprise, the team at Gazelle Interactive will execute a campaign that is both effective and custom-tailored to your business. Request a free quote today in order to find out how we can take your website to the next level.