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Effective CPA way higher than set Target CPA

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi There

 

I have a display campaign that's been running for well over 30 days with over 8000 conversions.

Problem is, my effective CPA is around 70% higher than my set Target CPA

 

I thought this is a learning curve and will eventually go down but now Adwords has tons of data and CPA is still way up there

 

Any ideas ?

 

Thanks

2 Expert replyverified_user

Re: Effective CPA way higher than set Target CPA

Top Contributor
# 2
Top Contributor
Hi Nicholas,

If You have recently enabled Target CPA, Please keep running for some days. and See weather It the CPA graph is reducing or Not.

Also, Can you please check that, whether, You can is in Aggressive and conservative targeting, If this is the case, It may impact in your campaigns.

Generally Target CPA takes some time to learn the campaign history, and you may see higher CPA. But please keep monitoring the campaigns.
--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: Effective CPA way higher than set Target CPA

Top Contributor
# 3
Top Contributor

Hi Nicholas,

 

Straight from the horse's mouth:

 

"These changes in CPA take place because your actual CPA depends on factors outside Google's control, like changes to your website or ads or increased competition in ad auctions. Additionally, your actual conversion rate can be lower or higher than the predicted conversion rate."

 

About Target CPA bidding

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

 

Hence either there have been changes in the advertising landscape or you mad changes to your website and ads. I assume the former is the case since periods of time you mentioned are enough for new players to claim their share.

 

Best,

Lakatos

Re: Effective CPA way higher than set Target CPA

[ Edited ]
Top Contributor
# 4
Top Contributor

Hi Nicholas,

 

Since @Rakesh Kumar mentioned Aggressive and Conservative targeting, I'd note that both will let AdWords automatically find quite a few new customers. However, if CPA is a real concern I'd rather opt out of both of them. You can dig down there after first clicking on the upper Display Network tab and then on the +TARGETING button.

 

Best,

Lakatos

Re: Effective CPA way higher than set Target CPA

Top Contributor
# 5
Top Contributor

@Rakesh Kumar and me seem to have interpreted a sentence differently. This is it:

 

"I have a display campaign that's been running for well over 30 days with over 8000 conversions."

 

So.. what is the truth? When did you apply CPA bidding? At the beginning of this 30 day period or just a few days ago? And how many conversions you accrued with what CPA since you did?

Re: Effective CPA way higher than set Target CPA

Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭
Thanks Lakatos and Rakesh for your replies

The campaign has been running for over 30 days with CPA Targeting enabled
Nothing has changed on my side (website or ads) and if competition came in I would expect to get less traffic - not pay a much higher CPA.
Conversion rates are pretty stable and agina - if they changed I would expect less traffic - not paying more
Also - both conservative and aggressive targeting are disabled

Re: Effective CPA way higher than set Target CPA

Top Contributor
# 7
Top Contributor

HI again,

 

If CPA is increasing while CR remains stable, the conclusion is that CPC has upped. Unless you have done something wrong, it should be due to changes in the advertising landscape. That typically translates to increased competitors' activity.

 

"..if they changed I would expect less traffic..."

 

While I understand your approach, that does not seem to be the case. Note that keeping the CPA was not a promise from Google, you were just told that the algorithm would make its best to that end unless it bumps into changes as discussed above.

 

Best,

Lakatos

Re: Effective CPA way higher than set Target CPA

Top Contributor
# 8
Top Contributor

Thanks @Lakatos for adding extra point. 

 

Hi Nicholas,

 

If your Conversion Rate is same, It means your CPC has Increased. And you have enabled CPA 30 days back, don't forget, Google has also remove the Side Ads, due to this many advertisers has increased the bids to maintain the top 4 positions. This could be one of the external factors.

 

I would like to suggest you to go through the below article and know how Target CPA algorithm works.

 

Determine Bid Strategy Based on Your Conversion

 

--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: Effective CPA way higher than set Target CPA

[ Edited ]
Top Contributor
# 9
Top Contributor

"Google has also remove the Side Ads, due to this many advertisers has increased the bids to maintain the top 4 positions"

 

Yup, that's a principal recent reason for the upheaval, the turmoil, and all the hoopla and hoo-ha.

A great point from @Rakesh Kumar!