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Scenarios where CPA is better than ROAS and vice versa

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# 1
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Hello, AdWords community,

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!

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Accepted by topic author vassil s
January 2017

Scenarios where CPA is better than ROAS and vice versa

Top Contributor
# 2
Top Contributor

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.