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Seasonal Account - CPA Issues?

Participant ✭ ☆ ☆
# 1
Participant ✭ ☆ ☆

I am a relatively new PPC executive and I am currently working on a very seasonal account.

The account has not done well at all for the last 18 months, and on average has cost/revenue percentage of 40%. So much money is going down the drain.

 

The 2 largest campaigns within the account are using CPA bidding, and neither are performing well. It seems the whole account has almost been left to go wild. It all seems are too expensive. 

 

So far I have been looking at these big campaigns (CPA) and they were full of old keywords. I have cut them down a lot, reducing the biggest most expensive ad groups down to only the top 20 or so kw words, and have removed any old keywords with a 0 conversion rate (checked against all time). I know this will take a while to have an effect but surely it must help?

 

I have not done a lot of work with CPA mainly CPC, and I am pretty sure this is the right thing to do. I have of course checked the ad and landing pages relevancy. 

 

However, although I am trying to bring these CPA campaigns back from the brink, i am not sure how to work them best with this very seasonal account. Should CPA only be used as the products begin to come into season? Then when coming out of season should CPC be resumed? 

 

I'm a bit lost! this account is huge and all over the place! Thanks! 

1 Expert replyverified_user

Re: Seasonal Account - CPA Issues?

Top Contributor
# 2
Top Contributor

Hi Abbie, the CPA bid strategy requires not only a good number of conversions but a good number of conversions on a regular basis.  Google only requires that a Campaign has 15 conversions in the last 30 days to be eligible for the CPA strategy but to be honest it works better and better the more conversions you have and the more consistent those conversions are.  Of course, AdWords will always struggle to optimise a Keyword for conversions if it's never had any conversions.


So, all in all, it sounds to me like CPA is not the best fit for this Account and I'd recommend you move to a Manual CPC strategy and manage bids and costs more proactively yourself.

 

How many conversions do you get per Campaign per day, on average?

 

Jon

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

Re: Seasonal Account - CPA Issues?

Participant ✭ ☆ ☆
# 3
Participant ✭ ☆ ☆
Hello Jon, thank you for your reply. that makes a lot of sense, I knew CPA works more on recent history and what you say confirms what I was thinking about CPA not being the best choice for such a seasonal campaign.

And it varies a lot, but at the moment its 1 - 3. another problem is, the value of each sale varies a lot with this account too.

However, some of the campaigns within the account will very soon be coming into the busy season. the way the account is set up is that 2 more general product campaigns are set to CPA. These others campaigns which are coming into season soon are not set to CPA. Could it work to change seasonal campaigns to CPA when the busy season comes around, then change them back to CPC when they come out of season?

Also what will the effects be if i change back to CPC? Should I do it gradually?

Thank you!