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Roas & Cpa

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# 1
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Please, tell me if a flexible bid strategy such as roas can be used with cpa bidding (optimizer) ? 

Let's say,  0 i want a cpa target at $10 with a roas of 200 % ? Does it seems sensible ?


Many thanks...

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Accepted by topic author garguier s
September 2015

Re: Roas & Cpa

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# 2
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Hi garguier, I guess in theory there could be a situation where you could combine the two strategies, but in practice I doubt it would be useful.  ROAS - Return on Advertising Spend - is used when you want to define a specific minimum conversion income from your advertising costs so, in your example, an ROAS of 200% specifies that - over time - you receive $2 in conversion values from every $1 you spend.  This, in itself, is a goal.  If you specify that you also want to limit the cost of a conversion to $10 (CPA), then you're going to be asking for a very specific set of circumstances that probably won't make sense.  


For example, a particular conversion might cost $10 and deliver a conversion value of $20 - this would satisfy both your requests.  But a conversion costing $150, and delivering a conversion value of $300 also satisfies the ROAS requirement - do you really want to exclude this conversion, even though it's delivering your target ROAS?


In most cases, I'd expect CPA to be used where no specific conversion values can be applied, e.g. in lead generation, sign-ups, etc.  Where you have actual conversion values, for example on an ecommerce site, then I'd expect ROAS to be the better option particularly since ROAS needs to be considered over a period of time, weeks, maybe months.


Does this help?



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Re: Roas & Cpa

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# 3
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Hi Jon,

It helps me a lot ! Great ! Anyway, this new strategy seems to be really useful and complementary to the cpa bing one...Many tks..