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Max CPL overspending

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# 1
Follower ✭ ✭ ✭

Dear all,

 

when I set a max CPL for an adgroup on which basis it will optimize the bids?

And can I have different max CPL for all the ad groups in the same campaign?

 

The max CPL rarely reflects what I am willing to spend, it’s always higher.

 

Thanks for your tips!

 

floriana

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Accepted by topic author floriana
September 2015

Re: Max CPL overspending

Follower ✭ ✭ ✭
# 5
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Thank you Pankaj but this doesn t answer my question.

I will try to rephrase.

What should happen if I set 2 Euros as max CPA for 2 ad groups in a campaign and 3 Euros max CPA to the other 2 ad groups of the same campaign? Will I get what I want? or the ad group will adjust on a campaign level /basis?

And what if the average max CPA of the rest of the campaigns in the same account is 1 Euro?

 

thanks for helping!

 

f.

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Marked as Best Answer.
Solution
Accepted by Karl (Explorer ✭ ✭ ☆)
September 2015

Re: Max CPL overspending

[ Edited ]
Explorer ✭ ✭ ☆
# 6
Explorer ✭ ✭ ☆

Hi floriana,

 

Edit: It is actually possible to have CPA bids on ad group level as well and similarly to a normal campaign it will then override the campaign CPA bid, meaning the average CPA for the campaign can be higher than the CPA you set on a campaign level.

 

You might still want to add products with different CPA targets into separate campaigns if you have a limited budget and if the CPA targets differ significantly or if the value/ROI of one ad group/product is more valuable than other as in this case you can allocate separate budgets to different products to focus on the more valuable sales first. 

 

More detailed info here:
http://support.google.com/adwords/bin/answer.py?hl=en&answer=2470106

Hope this helps.
Karl

View solution in original post

Re: Max CPL overspending

Top Contributor
# 2
Top Contributor

Hello floriana,

 

As far as I know, Google doesn't go with the terminology of CPL or Cost per Lead. Rather it uses Cost per Click (CPC), Cost per thousand impressions (CPM) or Cost per acquisiton (CPA) which is used by advanced tool called Conversion Optimizer.

 

Can you please elaborate on your question more?

 

Pankaj

Re: Max CPL overspending

Follower ✭ ✭ ✭
# 3
Follower ✭ ✭ ✭

Dear all,

 

when I set a max CPA for an adgroup on which basis it will optimize the bids?

And can I have different max CPA for all the ad groups in the same campaign?

 

The max CPA rarely reflects what I am willing to spend, it’s always higher.

 

Thanks for your tips!

 

floriana

Re: Max CPL overspending

Top Contributor
# 4
Top Contributor

Hello again,

 

When you use Conversion Optimizer, it automatically suggests you recommended max. CPA bid and recommended target CPA bid based on the historical conversions data and other factors, which your campaign has accrued. 

 

Once you set the Max. CPA inside campaign settings, you do have the option to increase the CPA bid of individual ad group if you want to. But please note that you will not have option to bid on particular keyword i.e. there will be no max. CPC available.

 

You need to give time to this automated tool to settle down and optimize the campaign for you. But if after collecting enough data, you find that it is not meeting the requirement which you want and the orthodox model of max. CPC works well for you in comparison to it, you are most welcome to do that. 

 

Hope that helps!

Pankaj

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

Re: Max CPL overspending

Follower ✭ ✭ ✭
# 5
Follower ✭ ✭ ✭

Thank you Pankaj but this doesn t answer my question.

I will try to rephrase.

What should happen if I set 2 Euros as max CPA for 2 ad groups in a campaign and 3 Euros max CPA to the other 2 ad groups of the same campaign? Will I get what I want? or the ad group will adjust on a campaign level /basis?

And what if the average max CPA of the rest of the campaigns in the same account is 1 Euro?

 

thanks for helping!

 

f.

Marked as Best Answer.
Solution
Accepted by Karl (Explorer ✭ ✭ ☆)
September 2015

Re: Max CPL overspending

[ Edited ]
Explorer ✭ ✭ ☆
# 6
Explorer ✭ ✭ ☆

Hi floriana,

 

Edit: It is actually possible to have CPA bids on ad group level as well and similarly to a normal campaign it will then override the campaign CPA bid, meaning the average CPA for the campaign can be higher than the CPA you set on a campaign level.

 

You might still want to add products with different CPA targets into separate campaigns if you have a limited budget and if the CPA targets differ significantly or if the value/ROI of one ad group/product is more valuable than other as in this case you can allocate separate budgets to different products to focus on the more valuable sales first. 

 

More detailed info here:
http://support.google.com/adwords/bin/answer.py?hl=en&answer=2470106

Hope this helps.
Karl