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Does Target CPA Bidding on AdWords Look at the performance of the keyword present in the account?

[ Edited ]
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# 1
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I had an experiment running to test if Target CPA bids was a viable option for my account and based on those results, created a new campaing with Target CPA bidding. However, the new campaign did not spend anywhere close to the old one or even the experiment. Does AdWords look at the data from my experiement and manual bidding campaign to determine the bids for the new Target CPA campaign?

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Does Target CPA Bidding on AdWords Look at the performance of the keyword present in the account?

Top Contributor
# 2
Top Contributor

Hi there;

The system analyzes your past performers to optimize CPA (CPC, impressions,  budget, devices...) and naturally, conversions. It's a complex algorithm.

The more conversions you have (within the last 30 days)  - the better the system can analyze and set a CPC. Though, Google set the minimum to 15 conversions within 30 days, since it's a statistical system, I would recommend at least 100.

 

 

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Does Target CPA Bidding on AdWords Look at the performance of the keyword present in the account?

Top Contributor
# 3
Top Contributor

Hi @Jash P,

 

You say you created a new campaign with Target CPA bidding and the big question is how new that campaign was. Completely new? I for one would not think it's a good idea to put a new campaign on an auto-bid strategy because learning from the campaign's history is a main pillar of the algo. Google says this:

 

***   About Target CPA bidding   ***

https://support.google.com/adwords/answer/6268632?hl=en

"To maximize results and give machine learning algorithms enough data to make informed bidding decisions, we recommend that you have at least 30 conversions in the past 30 days. It also helps if your ad group or campaign has received conversions at a similar rate for at least a few days."

 

The above are minimum requirements of course. In real life, you would likely need much more and better stats so that the machine learning system can achieve reliable results following a transitional period of time.

 

Best,

Lakatos

Does Target CPA Bidding on AdWords Look at the performance of the keyword present in the account?

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# 4
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Hi, 

 

I understand that the system analyzes past performers? But is it just from the campaign where Target CPA bidding is taking place or is it from the whole account? My campaign structure is device specific, hence if you say Google use past information from my previous campaigns, I would have over 100 conversions. 

Does Target CPA Bidding on AdWords Look at the performance of the keyword present in the account?

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# 5
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Thanks Lakatos. I have read the blog post there before and I understand the theory there. The campaign is a completely new campaign based on my experiment (I applied the changes of the experiment by creating a new campaign). Here lies my worry - When this campiagn started, I had 0 spend for the 1st 2 days even though the experiment had 10 conversions in the 7 days prior. Any suggestions on why this is the case?  

Does Target CPA Bidding on AdWords Look at the performance of the keyword present in the account?

Top Contributor
# 6
Top Contributor

"I understand that the system analyzes past performers? But is it just from the campaign where Target CPA bidding is taking place or is it from the whole account?"

Yeah, typically that's the case.

 

"When this campiagn started, I had 0 spend for the 1st 2 days..."

Sure, that was what I suspected. And that's the issue is caused by.