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CPA has increased after dropping, what might be the reasons for this?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

I have made some changes on all of the campaigns in my account and they proved to be good as the cost per converted click for all campaigns dropped. However, after a couple of days the cost per converted click has increased again even more than before the change has been implemented.

What might be causing this?

1 Expert replyverified_user
3 ACCEPTED SOLUTIONS

Accepted Solutions
Marked as Best Answer.
Solution
Accepted by topic author Rana Q
September 2015

Re: CPA has increased after dropping, what might be the reasons for th

Top Contributor
# 2
Top Contributor
Hi Rana,

various factors in your account can influence this behavior.

For example with your initial changes you might have improved your ads average position, resulting in higher CTR, higher quality score and lower cost per click.

The improved visibility may have resulted in more conversions. As a result your CPA was reduced.

This might have resulted in your competitors increasing their keyword bids (to show their ads above yours) resulting in increased cost per clicks for you, increasing your overall CPA.

There can be other reasons too.

So you need to check the some or more of the above mentioned factors to understand your CPA increase.

Deepak

View solution in original post

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

Re: CPA has increased after dropping, what might be the reasons for th

[ Edited ]
Participant ✭ ☆ ☆
# 3
Participant ✭ ☆ ☆

Hi Rana

I will give you some short pointers but I know you will also get a lot of great responses from the community and Top Contributors.

Points to consider

- Have you increased any bids / bidding strategies (cpa, flexible bidding?) CPA for example often takes a short time to really optimise itself (up to 1 month is often needed)
- What is your average position compared to previously? For example if you improved QS and your ad rank is higher, you may have been eligible for top 3 positions and thus receiving increased cpc's resulting in cost per conversion.
- Has your actual conversion rate declined? If no, it is likely the above mentioned factors.
- Has your ad copy changed significantly? I.e. are users taken to what they expect to find?
- Landing pages - Have you changed anything here, to result in lower conversion?
- KW Match types. For example, if you changed from exact to phrase, it could be the actual search term wasn't really what the user was searching for. i,e, "product x" for free
- It may be increased competition forcing up the cpc again (perhaps a bid modified for the tail end of the week / weekend)
- Is all of your conversion data firing? Ensure you test your tracking code to be sure
- Return visitors. Check your GA to see if you have any new visitors against returning ones. What type do you expect / want / need to maintain your cost per conversion.
- Seasonality? Is your product coming to an end of its season cycle?
- Visitors device. Check the device segment report. Are your visitors from a tablet and your site isn't tablet friendly?
- Better offers elsewhere? For example competitor X has a better offer or price.


There are 100s of factors why this may be the case. Hopefully be looking at the above diagnosis you may be able to identify the causal factors and react accordingly.

My advice, be patient. Many a hasty decision can be made in adwords without sufficient data to make a statistically sensible decision. Give it some time and monitor closely.

Hope that helps a little. Feel free to ask in return to any of the above.

Good luck

James Edward

View solution in original post

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

Re: CPA has increased after dropping, what might be the reasons for th

Collaborator ✭ ☆ ☆
# 4
Collaborator ✭ ☆ ☆
If you made a huge change like removing ad groups and replacing them with new ones, conversion optimizer might need several weeks to adjust to these changes. Also, making small changes like adding/removing keywords will cause natural changes in ad performance and you may need to wait some time to get an accurate understanding of its effects on your campaign's performance, since it's about data. The more data, the betterpredication can conversion optimizer make.

Apart from account changes, you should know that your actual CPA depends on factors outside Google's control, the most likely factor in your case would be increasing competition in ad auctions, this can lead also to increase your CPA.

I would suggest reading those great tips for conversion optimizer success:-
https://support.google.com/adwords/answer/2471188

View solution in original post

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

Re: CPA has increased after dropping, what might be the reasons for th

Top Contributor
# 2
Top Contributor
Hi Rana,

various factors in your account can influence this behavior.

For example with your initial changes you might have improved your ads average position, resulting in higher CTR, higher quality score and lower cost per click.

The improved visibility may have resulted in more conversions. As a result your CPA was reduced.

This might have resulted in your competitors increasing their keyword bids (to show their ads above yours) resulting in increased cost per clicks for you, increasing your overall CPA.

There can be other reasons too.

So you need to check the some or more of the above mentioned factors to understand your CPA increase.

Deepak

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

Re: CPA has increased after dropping, what might be the reasons for th

[ Edited ]
Participant ✭ ☆ ☆
# 3
Participant ✭ ☆ ☆

Hi Rana

I will give you some short pointers but I know you will also get a lot of great responses from the community and Top Contributors.

Points to consider

- Have you increased any bids / bidding strategies (cpa, flexible bidding?) CPA for example often takes a short time to really optimise itself (up to 1 month is often needed)
- What is your average position compared to previously? For example if you improved QS and your ad rank is higher, you may have been eligible for top 3 positions and thus receiving increased cpc's resulting in cost per conversion.
- Has your actual conversion rate declined? If no, it is likely the above mentioned factors.
- Has your ad copy changed significantly? I.e. are users taken to what they expect to find?
- Landing pages - Have you changed anything here, to result in lower conversion?
- KW Match types. For example, if you changed from exact to phrase, it could be the actual search term wasn't really what the user was searching for. i,e, "product x" for free
- It may be increased competition forcing up the cpc again (perhaps a bid modified for the tail end of the week / weekend)
- Is all of your conversion data firing? Ensure you test your tracking code to be sure
- Return visitors. Check your GA to see if you have any new visitors against returning ones. What type do you expect / want / need to maintain your cost per conversion.
- Seasonality? Is your product coming to an end of its season cycle?
- Visitors device. Check the device segment report. Are your visitors from a tablet and your site isn't tablet friendly?
- Better offers elsewhere? For example competitor X has a better offer or price.


There are 100s of factors why this may be the case. Hopefully be looking at the above diagnosis you may be able to identify the causal factors and react accordingly.

My advice, be patient. Many a hasty decision can be made in adwords without sufficient data to make a statistically sensible decision. Give it some time and monitor closely.

Hope that helps a little. Feel free to ask in return to any of the above.

Good luck

James Edward

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

Re: CPA has increased after dropping, what might be the reasons for th

Collaborator ✭ ☆ ☆
# 4
Collaborator ✭ ☆ ☆
If you made a huge change like removing ad groups and replacing them with new ones, conversion optimizer might need several weeks to adjust to these changes. Also, making small changes like adding/removing keywords will cause natural changes in ad performance and you may need to wait some time to get an accurate understanding of its effects on your campaign's performance, since it's about data. The more data, the betterpredication can conversion optimizer make.

Apart from account changes, you should know that your actual CPA depends on factors outside Google's control, the most likely factor in your case would be increasing competition in ad auctions, this can lead also to increase your CPA.

I would suggest reading those great tips for conversion optimizer success:-
https://support.google.com/adwords/answer/2471188

Re: CPA has increased after dropping, what might be the reasons for th

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭
Thank you guys, out of all the mentioned factors, I think it's either competition or the fact that we have recently launched a new version of the website so I will be checking with the IT department if they have added Adwords code.

Re: CPA has increased after dropping, what might be the reasons for th

Collaborator ✭ ☆ ☆
# 6
Collaborator ✭ ☆ ☆

Removing conversion tracking code from your website or moving it to a different location while running Conversion Optimizer. Doing either of these could result in significant changes in which clicks lead to reported conversions. As a result, Conversion Optimizer may need up to several weeks to adjust to these changes.