Scenarios where CPA is better than ROAS and vice versa[ Edited ]
January 2017 - last edited January 2017
I'm familiar with the definitions of both Target CPA and ROAS bids, but I don't quite feel like I understand them. I learn great (as great as an unintelligent person such as myself can learn) through examples and practical scenarios. I would appreciate it tons if you can give me a couple scenarios where CPA bidding is better than ROAS, and the other way around. That way, maybe one day, I could implement one or both of these practices in my advertising ventures.
Thanks a bunch!
Scenarios where CPA is better than ROAS and vice versa
ROAS makes the most sense when you are able to track revenue - Like an ecommerce store. Say for example, a client has a goal of 10% of ad spend to revenue. This is ROAS.
CPA makes sense for lead generation or cases where you can't track revenue directly. Like a plumber that is willing to pay $30/lead.
I tend to prefer manual CPC bidding and work toward an ROAS or CPA goal through optimization. I feel this gives you a little more control over the details. Where the other bidding processes are more automated.