Optimizing for ecommerce website
Do people set a cpa target at an ad group level when optimising for ecommerce websites? and if so do you try and take an average of all products within that ad group in order to work out the target cpa? The products within my ad groups are all similar but can vary in price.
Re: Optimizing for ecommerce website
Hi @Mike H it really does seem like we start every answer to every question with this, but it really does depend...
On the one hand, it might seem obvious that if you're going to work with a CPA target you need some consistency in your value per conversion; it's going to be a lot easier to work with CPA targets if every conversion is $100 than if the conversion value can vary from $50 to $500. So, simple advice would suggest to split your Groups so your products have a very similar (net) conversion value. However, this may still cause problems if your products can be bought in multiples, or if your visitors sometimes (or frequently) buy more than one product from different ranges; it may have been Keyword A that brought them to the site, and that Keyword may be associated with a product with a $100 conversion value, but they liked the site so much they had a rush of blood to the head and also bought a $500 widget, so your typical $100 conversion value for that Keyword has suddenly had a $600 conversion.
If you are in a situation where this is possible, it might be better to look at an ROAS (Return on Advertising Spend) based strategy rather than CPA (cost per acquisition). Although very similar, the key difference is that ROAS can account for these fluctuations more easily rather than looking for a specific spend per conversion that might get thrown out by the odd purchases.