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CPC or CPA?

Follower ✭ ☆ ☆
# 1
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Hello everyone. I am new to the forum and also new to SEM. I am running a campaign to sell products on a website that deals with selling cleaning products here in the UK. 

 

The objective of this campaign is to sell products. As I see it I should be running my ads through a CPA setup. Am I correct in thinking this?

 

Thanks in Advance, I look forward to seeing what you have to share with me. 

Si. 

2 Expert replyverified_user

Re: CPC or CPA?

Top Contributor
# 2
Top Contributor
Hi Simon B

Thanks for posting the question in forumSmiley Happy

If you are starting, adwords allow you to choose only CPC bid. You can enable CPA in new campaigns.

To enable the CPA campaigns, you campaigns requires:-
1 Tracking should be enable.
2. The campaigns must receive the at least 15 conversion in 30 days.
3. Conversion should be generated at the same rate.

Thus to meet above all requirement you have to first set CPC then you can enable CPA.

please follow the below link for more info:-

https://support.google.com/adwords/answer/2471188?hl=en
--Rakesh Kumar, AdWords Top Contributor , Twitter | Linkedin | Community Profile
Did you find any helpful responses or answers to your query ? If yes, please mark it as the ‘Best Answer’

Re: CPC or CPA?

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# 3
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Thank you for your swift reply Rakesh, I am currently running a CPC campaign to try and gain 15 conversions in 30days.

 

I hope that I can get this number of conversions. I wonder if you could help me again? In my Campaign I am advertising five products, each product has its own Ad Group with various numbers of keywords and different pricing tiers, is it just a Campaign that has to get 15 conversions? or would it be each Ad Group?

 

Thanks.

Re: CPC or CPA?

Top Contributor
# 4
Top Contributor

Hi Simon, further to Rakesh's advice (and to answer your last question), the Conversion Optimiser becomes available once you have 15 conversions per Campaign, not Ad Group.

 

However, I would strongly caution against moving to a CPA approach if you only just qualify with 15 conversions spread over 5 products - that effectively means you're only seeing (on average) 3 conversion per product per month and that really isn't enough data for AdWords to make good decisions.  Although the minimum is set that way by Google, I always advise looking for a lot more conversion data to allow the automated tools to work well.

 

You should also bear in mind that the CPA approach isn't "magic".  It can't guarantee you a specific CPA you set, it can only try to achieve that.  If your Campaign is well-structured and managed it's quite likely you'll do just as well using the manual CPC approach as you will with CPA.


Jon

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

Re: CPC or CPA?

Top Contributor
# 5
Top Contributor
You are welcome SimonSmiley Happy

CPA bidding requires 15 conversion from overall campaigns conversion, it does not require individual AdGroup and keyword conversions.
--Rakesh Kumar, AdWords Top Contributor , Twitter | Linkedin | Community Profile
Did you find any helpful responses or answers to your query ? If yes, please mark it as the ‘Best Answer’

Re: CPC or CPA?

Explorer ✭ ✭ ☆
# 6
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In January 2014, Google will be removing the ability to set a maximum cost-per-acquisition (max CPA) bid in a campaign using Conversion Optimizer. At the end of the first quarter of 2014, we'll begin to automatically switch campaigns that are still using max CPA bidding to target cost-per-acquisition (target CPA) bidding. If you're using a max CPA bid, we recommend switching to a target CPA bid or the target return on spend (ROAS) flexible bid strategy.

Details at https://support.google.com/adwords/answer/3290319

Re: CPC or CPA?

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# 7
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Thank you for your reply Jon. I know that CPA will not be the magic solution to my problems, but I would like to think that it will a great help. I am just worried about my visitors not converting. With CPA this wouldn't be a problem, but if I'm getting hundreds of clicks with no ROI, I'm going to go under.

Re: CPC or CPA?

Explorer ✭ ✭ ☆
# 8
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Simon, if you're worried about visitors converting, a good email autoresponder series will make it quite clear to them why you are the one they need.

Conversions are often best through the medium of an email followup, and the things you can learn from those who buy (and those who unsubscribe too) can be used to improve your campaigns significantly.

Re: CPC or CPA?

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# 9
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Hi Gemma, thanks for your reply. As I am new to this I have a contact list of around 1500 members. I obtained this list through customers who purchased my products through eBay. I have been sending one email every week to try and drive traffic to my site buy I have a very low CTR. I think this is probably because I am in an niche in which there is not much chance of getting a returning customer. I have to make AdWords work for my business. I will keep sending emails, but im afraid that they will have little or no impact on traffic or conversions.

Re: CPC or CPA?

Explorer ✭ ✭ ☆
# 10
Explorer ✭ ✭ ☆
Well for a start, well done for having an email list and getting that many to sign up!

The other point is to add something to your landing pages that's just a little intriguing. After all, if you can get them to read your headline and open your email ... simply because you mentioned the secret of ...