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Help with CPA Bidding

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# 1
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Hello There!


I have campaigns that says that are available to use CPA bidding. This kinds of campaigns have arround 25 to 35 conversion. (Not just 15). Also, they have 2 weeks (or more) of stats to analize and bla bla bla. 


It suggest me to bid for CPA  $2.5. If I set $2.5 or more like $3, the traffic goes down if I dont monitor the performance. I allways use MAX CPA and NOT Target CPA. 


Some campaign react better but most of I use CPA Bidding traffic goes down and also conversion. So, I have to turn it OFF.


Ofcourse, I didnt make big or small changes to the campaigns when CPA biddig is available. I know that "rule".


So, when is the best momento to turn on CPA bidding? quantity of conversions? time?? What it better, MAX or Target CPA?? I need that all conversion from my "Ad group" have $3 for a conversion a NOT more.  I mean, If I set CPA $3, do not overpass that amount during time. 


Please, I need tips to know how to get the best from this tool.







1 Expert replyverified_user
Marked as Best Answer.
Accepted by Craig B (Google Employee)
September 2015

Re: Help with CPA Bidding

Google Employee
# 2
Google Employee
Hi Isadora,

My name is Craig from Google AdWords and I am happy to assist you in regards to Conversion Optimizer and CPA best practices. Conversion Optimizer works best when there is a large amount of conversion data, so it is generally a great fit if you are receiving a good amount of conversions and ideal to turn it on at this time. I recommend that the campaign has been using AdWords conversion tracking for at least two weeks but the longer conversion tracking has been running, the more data the system has and the better job it can do optimizing your ROI especially if you are receiving low traffic.

A few best practices to also keep in mind is that CPA bidding generally performs better if the campaign is direct-response oriented i.e., the campaign focuses on generating sales on an e-commerce website and has a single well-defined conversion type, such as a completed purchase or signup. Also make sure before using CPA bidding that the campaign has a relatively stable conversion rate, with no major recent changes to the code or conversion page.

In terms of Target CPA versus Max CPA, there are some key differences to consider but it ultimately comes down to your goals. Target CPA bidding is the average amount you'd like to pay for a conversion and is designed to make it easier for you to determine the value you should set for your bids to align with your business goals. It is generally easier to consistently achieve a particular CPA and requires less frequent bid modifications. Target CPA often has a longer ramp up phase to reach an equilibrium state compared to Max CPA when it is first enabled and it is generally recommended to allow one to two weeks after using Target CPA to evaluate the performance. With Target CPA, some bids will be above this target and some will be below it, but altogether, the cost per conversion should average to the Target CPA you set.

With Max CPA bidding, you are telling the system the most you are willing to pay for each conversion. It is important to note that your actual cost-per-acquisition depends on external factors such as changes to your website and ads, or increases in competition which could cause your actual conversion rate to be lower than the predicted conversion rate. If this happens, your actual CPA may exceed your maximum CPA bid but the vast majority of the time, most of your bids will be below whatever the maximum is. I hope you find this useful and please let me know if you have any additional questions!