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How CPA model work?

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# 1
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How actually the CPA model works for Google Adwords search campaigns? What are the factors that Google looks into to show my ads to people who are more likely to convert? How an account manager can optimize the campaign settings to help Adwords system in doing this?

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Marked as Best Answer.
Solution
Accepted by topic author Jithin C
September 2015

Re: How CPA model work?

[ Edited ]
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# 3
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Hi Jithin,

It sounds like you are asking about Conversion Optimizer which is a a feature that you may be eligible to enable that would allow Google to determine when and to whom to show your ads (based upon your keyword set) and what to bid. You must qualify for this feature by having 15 conversions in the past 30 days in any given campaign that would employ the feature. This is because Google has to have enough historical data to determine when your ads are most and least likely to convert.

Google will use this historical data to determine how to bid for each auction with the goal of generating as many conversions as it can for your budget, at or below the CPA that you have defined.

You can read more about Conversion Optimizer Here: https://support.google.com/adwords/answer/2471188?hl=en

and also here: https://support.google.com/adwords/answer/2390684?hl=en

A similar question was posted in the forum with some additional answers that you might like to read - you can find it here: https://www.en.adwords-community.com/t5/Basics-for-New-Advertisers/conversion-optimizer/td-p/457618

 

*Note - if you employ this feature, all of your bids will be ignored *except* a -100% mobile bid modifier.


I hope this helps!

Amy Bishop
AmyBishopMarketing.com

View solution in original post

Re: How CPA model work?

Explorer ✭ ✭ ✭
# 2
Explorer ✭ ✭ ✭

Hi Jithin,

CPA (Cost per Acquisition), as you would be knowing, is calculated as Total Cost/Total Conversions.

For your question, What are the factors that Google looks into to show my ads to people who are more likely to convert?

 

Google doesn't decide on its own how to show/rotate the ads. It depends on your Campaign's Ad Rotation setting that you have chosen. Ad Rotation includes below options:

 

Optimize for clicks: Show ads expected to provide more clicks

Optimize for conversions: Show ads expected to provide more conversions (the one you are looking for)

Rotate evenly: Show ads more evenly for at least 90 days, then optimize

Rotate indefinitely: Show lower performing ads more evenly with higher performing ads, and do not optimize

 

Based on above options and your selection, Google shows/rotates your ads.

 

Hope it helps.

 

Regards,

Ashish

Marked as Best Answer.
Solution
Accepted by topic author Jithin C
September 2015

Re: How CPA model work?

[ Edited ]
Participant ✭ ✭ ☆
# 3
Participant ✭ ✭ ☆

Hi Jithin,

It sounds like you are asking about Conversion Optimizer which is a a feature that you may be eligible to enable that would allow Google to determine when and to whom to show your ads (based upon your keyword set) and what to bid. You must qualify for this feature by having 15 conversions in the past 30 days in any given campaign that would employ the feature. This is because Google has to have enough historical data to determine when your ads are most and least likely to convert.

Google will use this historical data to determine how to bid for each auction with the goal of generating as many conversions as it can for your budget, at or below the CPA that you have defined.

You can read more about Conversion Optimizer Here: https://support.google.com/adwords/answer/2471188?hl=en

and also here: https://support.google.com/adwords/answer/2390684?hl=en

A similar question was posted in the forum with some additional answers that you might like to read - you can find it here: https://www.en.adwords-community.com/t5/Basics-for-New-Advertisers/conversion-optimizer/td-p/457618

 

*Note - if you employ this feature, all of your bids will be ignored *except* a -100% mobile bid modifier.


I hope this helps!

Amy Bishop
AmyBishopMarketing.com

Re: How CPA model work?

Follower ✭ ✭ ✭
# 4
Follower ✭ ✭ ✭
Hi Amy,

That's exactly i was asking for. I think my question was bit confusing. Thanks for the info and thanks for the links.. Let me go through them..

Re: How CPA model work?

Participant ✭ ✭ ☆
# 5
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Happy to help! If you have any questions about the link, feel free to post them here Smiley Happy