AdWords
6.6K members online now
6.6K members online now
Improve your AdWords performance and boost your ROI, CTR, and Quality Score
Guide Me
star_border
Reply

Campaign Settings - Target CPA

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hello,

I have a question about automated settings for search campaigns. If I set a campaign for "target CPA" at some point, say $3, and a budget of $100. How will the campaign perform when changing one or both of these parameters? I ask this because sometimes I set a campaign on $3 target and I get average CPA of $0.5, but when I try to lower it to $2 I get an average CPA of $1. Moreover, as I understand it, changing the campaign's budget shouldn't affect the CPA (when it's set to target cpa) - but when I change just the budget I see changes in CPA. I would like to understand more on how the "target CPA" works and how can I get the most out of it.

Thank you,

Nizan.

1 Expert replyverified_user

Campaign Settings - Target CPA

Participant ✭ ✭ ✭
# 2
Participant ✭ ✭ ✭

CPA works off your conversion data, you should have a substantial base of conversion data and a good idea of what your CPA (cost/conversion) is before trying it.  I have had the best results with it for campaigns that generate consistent conversion patterns, and when I set the Target CPA just at, or right below where it has been while the campaign was running in manual or enhanced CPC mode. 

 

Target CPA is a "black box algorithm", but it is safe to say it is a general-purpose linear pattern recognition (learning) algorithm. I don't believe Google has disclosed much beyond that, there are experts on here that would know. 

 

Campaign Settings - Target CPA

Explorer ✭ ✭ ☆
# 3
Explorer ✭ ✭ ☆

hi Nizan, 

 

it firstly depends on how often you change your budget, if you change it many times then CPA will always be recalculated and affect it. 

secondly with an average of $0.5 i dont see why you would want to lower it from $3 to $2. 

regards,

 

Zaby

 

Campaign Settings - Target CPA

Top Contributor
# 4
Top Contributor

Hi Nizan,

 

Your Target CPA bidding methodology actually works real time. Based on the smart bidding and real time signals, this machine learning technology can make real time ad auction changes. Due to this reason, you might witness a change to actual CPA as compared to the target CPA that you have set across your campaigns.

 

If you are constantly making changes to your daily budget, that would certainly impact the automation system that works and in flow the number of conversions during CPA model bidding. My suggestion would be to make changes one by one, monitor them and give it sometime, till you further make any changes.

 

My 2 cents!

Pankaj

 

Campaign Settings - Target CPA

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭

CPA targeting is a learning algorithm that optimize your campaigns based on your conversion data.

If you change the campaign budget it can affect your CPA let's say for example that you increase your budget by +100% that means that the targeting has changed e.g. the algorithim can get more traffic and can increase the bids in the short run it might affect your CPA but in the long run it should keep the same CPA range.

 

If you changing a parameter in your campaign I suggest you give it a few days until you can get conclusions.

Also, check if you deliver method is standard or accelerated, if you want to play safe I recommend to keep it as 'standard'.