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CPA + automated rules

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi,

could you please explain how to set up automated rules for CPA bids?

I have read other threads on the topic, but I still don't get how to do it.

I have a particular campaign that uses CPA bidding (OK results - needs improvement in efficiency). Some groups have higher, some lower Cost / converted click. I wanted to increase CPA budget on better performing adgroups, but when I select that particular campaing, I don't get any results under preview although I should.

Settings I used:

1) Apply to: All (but deleted) adgroups in all campaigns
2) Campaign name = equals = My campaign name
3) Bidding strategy (is some of) = Target CPA (which I use for that campaign)
4) Price / converted click = my desired value
5) Number of converted clicks >= 1
6) Frequency: Monthly (using data from last month)

The problem is that under "preview results" I don't see any changes, and there are a number of groups that match these criteria and should appear under "preview" / be subject to change.

Thanks in advance,

Mate

1 Expert replyverified_user
1 ACCEPTED SOLUTION

Accepted Solutions
Marked as Best Answer.
Solution
Accepted by topic author Mate J
September 2015

Re: CPA + automated rules

Top Contributor
# 8
Top Contributor

Hi Mate, I can't help feeling you're confusing some key terms here.

 

CPC is the cost-per-click of a keyword.

 

CPA is the cost-per-acquisition (or action) such as a sale or sign-up.

 

So, if your CPC is $1 and you get a sale every 10 clicks, your CPA is $10.  When a CPA bidding strategy is applied, AdWords controls the cost-per-click bids so trying to change these with Automated Rules won't work.  You cannot specify that you want a CPA of $10 and set your own CPC - it's one or the other.

 

What you can do via Automated Rules is change the CPC bids based upon historical CPA - sort of like running your own version of CPA bidding.  If you look in the Rules setup you'll see an option to test cost/conversion and this is another way to describe CPA.  So, for example, if you wanted to aim for a CPA of $10, you could create a rule that reduced the CPC of Keywords where over the past 7 days or more their cost/conversion was greater than $10.  You could create other rules that increased CPC where the cost/conversion was less than $10 to see if an increased bid resulted in more clicks.

 

Does this help or confuse things even more?

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

View solution in original post

Re: CPA + automated rules

Participant ✭ ☆ ☆
# 2
Participant ✭ ☆ ☆
Hey Mate,

You can find out more about seting up an automated rule on this link: https://support.google.com/adwords/answer/2472779?hl=en

Re: CPA + automated rules

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭
Hi Kandarp,

thanks for your reply. I have read the above article a few times but it doesn't seems to solve/adress my problem. If you have experience using automated rules with CPA bidding, please advise Smiley Happy

Cheers,

Mate

Re: CPA + automated rules

Top Contributor
# 4
Top Contributor

Hi Mate, as far as I know, it's not possible to alter the CPA bid for a bidding strategy using Automated Rules, the only options for Ad Groups is to change Max. CPC, pause, enable or send email.

 

What are you seeing against the "Automatic Action" line near the top of the rule?

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

Re: CPA + automated rules

[ Edited ]
Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭

Hi Jon,

thanks for your response. I have seen people writing about using Automated rules with CPA bidding (discussion 1, discussion 2 ), but did not figure how they actually change the rules and applied it on their CPA campaigns/ad groups.

 In the "Automatic action setup" I have two options: 1) Increase or  2) decrease bid for a certain percentage and limit (or not) MAX bid, if that's what you're thinking.The rule is "selected" to be applied on all but deleted ad groups in all campaigns.

 

The rule used is "Change max. CPC of an adgroup when..."

Re: CPA + automated rules

Top Contributor
# 6
Top Contributor

Hi Mate, can we clarify what you want to achieve?

 

Your original post talks about changing the "CPA budget", but your last post indicates you have an action that will change the CPC.  

 

Do you want to change the actual target CPA - in other words, if your CPA is currently $10 per conversion, you want to be able to change it to $11 or something, or do you want to change CPC values?

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

Re: CPA + automated rules

Visitor ✭ ✭ ✭
# 7
Visitor ✭ ✭ ✭

Hi Jon,

thanks for your effort once again. I want to be able to change CPA bid for a certain percentage.

I mentioned CPC because the four options for changing/managing ad groups with automated rules are:

1) Change MAX CPC of an ad group when

2) Pause ad groups when

3) Enable ad groups if

4) Email me when

That is the essence of the problem, because when I use 1) Change MAX CPC of an ad group when (what other should I use?) for trying to change CPA bids according to my margins, I don't get anything under "preview" (nothing will get changed, although I specified the terms that should change the bids.

Thanks,

Mate

Marked as Best Answer.
Solution
Accepted by topic author Mate J
September 2015

Re: CPA + automated rules

Top Contributor
# 8
Top Contributor

Hi Mate, I can't help feeling you're confusing some key terms here.

 

CPC is the cost-per-click of a keyword.

 

CPA is the cost-per-acquisition (or action) such as a sale or sign-up.

 

So, if your CPC is $1 and you get a sale every 10 clicks, your CPA is $10.  When a CPA bidding strategy is applied, AdWords controls the cost-per-click bids so trying to change these with Automated Rules won't work.  You cannot specify that you want a CPA of $10 and set your own CPC - it's one or the other.

 

What you can do via Automated Rules is change the CPC bids based upon historical CPA - sort of like running your own version of CPA bidding.  If you look in the Rules setup you'll see an option to test cost/conversion and this is another way to describe CPA.  So, for example, if you wanted to aim for a CPA of $10, you could create a rule that reduced the CPC of Keywords where over the past 7 days or more their cost/conversion was greater than $10.  You could create other rules that increased CPC where the cost/conversion was less than $10 to see if an increased bid resulted in more clicks.

 

Does this help or confuse things even more?

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

Re: CPA + automated rules

Visitor ✭ ✭ ✭
# 9
Visitor ✭ ✭ ✭
Hi Jon,

thanks for your effort and help. I understand (and agree with) everything you said before, just wanted to test CPA as a bidding strategy with Automated rules, which isn't actually possible. What is possible, however (what you described), is to use manual CPC bidding and then adjust it with automated rules according to your CPA goal. I get that. Just wanted to test the situation when Google algorithm is "more in charge".

Thank you for your help once more.

Best,

Mate