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Reduce Display network CPA maintaining transactions

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

I run ROI display campaigns. Few months back, I was able to acquire 40 customers on average daily at a reasonable cost ~$30 and CPC of ~40 cents. Then I increased CPC to ~80 cents and I was able to acquire on average 45 customers daily at a CPA of $35. My CPA increased by 17% but, transactions increased only by 10%. 

 

In order to reduce CPA, recently I reduced the CPC back to 40 cents. This has significantly reduced my number of transactions, making it almost half that I was getting earlier. However, my CPA for the last two weeks is still hovering around $34. Placements are set as target & bid for both CPA and CPC campaigns.

 

I have 4 campaigns on CPA which burns the most and about 12 campaigns on CPC. I have done the possible optimization but, the CPA is still very high for me. 

 

Can anyone please tell me how to curb the loses and bring back the CPA around $30 and transactions around 40?

1 Expert replyverified_user
2 ACCEPTED SOLUTIONS

Accepted Solutions
Marked as Best Answer.
Solution
Accepted by topic author Ashish D
September 2015

Re: Reduce Display network CPA maintaining transactions

Google Employee
# 2
Google Employee

Hi Ashish, 

 

Something to bear in mind is that CPC/CPA can fluctuate significantly based on your targeting options as well as the behaviour of your competitors. If people are coming in and out of the auction it can obviously have a knock on affect on your performance. 

 

The other thing is that, you might just want to switch back to CPC. CPA works best for campaigns where you have a significant amount of conversion data and don't mind if you performance fluctuates a little day-to-day as long as your long-term goal is met. If you have a more short-term aim with his campaign, CPC will work better for you. 

 

I would advise going back to CPC for a while to see how that affects your conversion costs and then make a decision on which is better for you once you can compare your CPC and CPA perfomance. 

 

Let us know if you have any other questions about this. 

Hannah

View solution in original post

Marked as Best Answer.
Solution
Accepted by Hannah (Google Employee)
September 2015

Re: Reduce Display network CPA maintaining transactions

Top Contributor Alumni
# 3
Top Contributor Alumni
Hi there,

This is not an uncommon issue. Many a time I have been asked to 'Get a campaign back to the way it was'. Frankly, this is impossible to guarantee. Even if you put things back the way they were, performance is not assured.

Hannah mentioned that this can be down to many things such as competitors changing their activity, but most likely is it's something seasonal to do with your customers. Also bear in mind that if you're running in placements, the traffic you get from those sites will be directly attributable to their own site traffic, even if your CTR stays the same.

You also have to think about what dictates your conversion rate; because it's for sure nothing to do with your CPC in this case. You mention that your transactions are now less than half what they used to be, even with the same bids, settings and placements.

But how many clicks are you getting vs. before, and what is the conversion rate? Has the conversion rate of your own site gone down?

These are the things I would be looking at my friend, not just CPC. I hope that digging in to these extra areas will bring you some clarity, and identify some actions to take.

Feel free to post back extra details.
Jack Porter-Smith
Jack's G+

View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author Ashish D
September 2015

Re: Reduce Display network CPA maintaining transactions

Google Employee
# 2
Google Employee

Hi Ashish, 

 

Something to bear in mind is that CPC/CPA can fluctuate significantly based on your targeting options as well as the behaviour of your competitors. If people are coming in and out of the auction it can obviously have a knock on affect on your performance. 

 

The other thing is that, you might just want to switch back to CPC. CPA works best for campaigns where you have a significant amount of conversion data and don't mind if you performance fluctuates a little day-to-day as long as your long-term goal is met. If you have a more short-term aim with his campaign, CPC will work better for you. 

 

I would advise going back to CPC for a while to see how that affects your conversion costs and then make a decision on which is better for you once you can compare your CPC and CPA perfomance. 

 

Let us know if you have any other questions about this. 

Hannah

Marked as Best Answer.
Solution
Accepted by Hannah (Google Employee)
September 2015

Re: Reduce Display network CPA maintaining transactions

Top Contributor Alumni
# 3
Top Contributor Alumni
Hi there,

This is not an uncommon issue. Many a time I have been asked to 'Get a campaign back to the way it was'. Frankly, this is impossible to guarantee. Even if you put things back the way they were, performance is not assured.

Hannah mentioned that this can be down to many things such as competitors changing their activity, but most likely is it's something seasonal to do with your customers. Also bear in mind that if you're running in placements, the traffic you get from those sites will be directly attributable to their own site traffic, even if your CTR stays the same.

You also have to think about what dictates your conversion rate; because it's for sure nothing to do with your CPC in this case. You mention that your transactions are now less than half what they used to be, even with the same bids, settings and placements.

But how many clicks are you getting vs. before, and what is the conversion rate? Has the conversion rate of your own site gone down?

These are the things I would be looking at my friend, not just CPC. I hope that digging in to these extra areas will bring you some clarity, and identify some actions to take.

Feel free to post back extra details.
Jack Porter-Smith
Jack's G+

Re: Reduce Display network CPA maintaining transactions

Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭
Thank you Hannah, I did the same. Things have slightly improved.

Re: Reduce Display network CPA maintaining transactions

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭
Thank you Jack, I am digging into the data.