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CPA gone through the roof.

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hey guys, 

 

I have been managing our Adwords account now for about 10 months and at the start we were flying high, our CPA was at about £26 and we were getting in about 60 conversions a month. For some odd reason February this year, it started to decline pretty fast until the point where we were barely scraping 40 conversions and our CPA has gone through the roof! At minute we're looking at 4-10 conversions a week with a CPA at £105 and I just can't understand why? I haven't made any major changes to our account that could be the cause of such a huge drop off... 

 

If anyone can shed some light on this situation that would be great.

 

Thanks, 

Tom

 

2 Expert replyverified_user

Re: CPA gone through the roof.

Top Contributor
# 2
Top Contributor
Hi Tom,

If I recall correctly, Google retired right side ads as of end of February current year. This change drastically reduced the number of adverts shown on the SERP and raised competition for available ad spots. Even if you had not made any major changes to your account, the changes made by Google could explain what you have been experiencing recently.

Best,
Lakatos

Re: CPA gone through the roof.

Rising Star
# 3
Rising Star
And of course AdWords is auction based, so any new advertisers bidding on the same terms could cause your actual CPC to rise, or ad position to drop.

Or a new advertiser could have more appealing ads or better prices.

Look for month by month changes to your

CPC
CTR
Ad position

Re: CPA gone through the roof.

Top Contributor
# 4
Top Contributor

Yup, that' a thoughtful addition from @RobSkelton. To put them together, we can say, that the advertising landscape may change drastically even if you personally do not apply changes. I mean Google plus your rivals.