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Target CPA higher than effective CPA

[ Edited ]
Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi there,

I just started working with a new customer that has various display campaigns with CPA Target offer. I've made a lot of changes and I was able to enhance the average cost per conversion, at a lower cost than the actual one.

 

Here some numbers:

- CPA Target: 11,30€

- CPA Effective: 8,80€

 

During the campaign management, I see a lot of placement that generate lot of costs without any conversion, but Google AdWords still show the ads in those websites. When I say "lot of costs" I mean 10x times the average cost per conversion (cost > 80€),

 

What I want to do is to start decreasing the CPA Target with the goal to "force" AdWords to focus more on placement that converts.

 

Could be some problems if I decrease the CPA Target, for example at 10€? 

 

Thanks

 


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1 Expert replyverified_user
1 ACCEPTED SOLUTION

Accepted Solutions
Marked as Best Answer.
Solution
Accepted by topic author Matt S
November 2015

Re: Target CPA higher than effective CPA

Top Contributor
# 4
Top Contributor
Yes, Decrease Target CPA with 30-50 cent, and then analyse the performance. If Performance is in positive then you can optimize accordingly.

Regarding this question "Google Adwords continued to show ads in low performance websites just because it has more "margins" thanks to my optimization."

Google trying to show the ads on the placements where users are likely to be convert. It does not mean that AdWords only show on the ads on the placement based on margin.

But it is true that user does not take action on each and every placements ads,. It is good to remove such placements which does not yield positive result. It shows the ads on several factors on those placements. Like Past CPA, past campaign performance, Current trends and competition etc.

--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’

View solution in original post

Re: Target CPA higher than effective CPA

Top Contributor
# 2
Top Contributor

Hi Matts,

 

If you suddenly reduce the Target CPA from 11.30 to 10, It will directly impact on campaign's traction. 

Your may loose impression or click.

 

Thus, I would suggest you to exclude the poor performing placements or irrelevant placements. Also, If you want to reduce target CPA, you can reduce it slowly and gradually.

 

I would recommend you to read the below article about Target CPA and best Practices.

 

https://www.en.advertisercommunity.com/t5/Articles/Determine-Bid-Strategy-Based-on-Your-Conversion/b...

 

--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: Target CPA higher than effective CPA

[ Edited ]
Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭

Hi Rakesch,

Thanks for your answer! What do you mean with decrease slowly the CPA target? 1cent, 5cent, 10cent, etc..

 

Excluding low performance placement is what I'm already doing, starting from the most expensive one without conversions, to the ones with high cost per conversion and/or low CTR and/or low conversion rate.

 

I asked this question because I've had the feeling that at some point, Google Adwords continued to show ads in low performance websites just because it has more "margins" thanks to my optimization.

 

Thanks again!

 

Matt

 


Segment and qualify your website visitors

Marked as Best Answer.
Solution
Accepted by topic author Matt S
November 2015

Re: Target CPA higher than effective CPA

Top Contributor
# 4
Top Contributor
Yes, Decrease Target CPA with 30-50 cent, and then analyse the performance. If Performance is in positive then you can optimize accordingly.

Regarding this question "Google Adwords continued to show ads in low performance websites just because it has more "margins" thanks to my optimization."

Google trying to show the ads on the placements where users are likely to be convert. It does not mean that AdWords only show on the ads on the placement based on margin.

But it is true that user does not take action on each and every placements ads,. It is good to remove such placements which does not yield positive result. It shows the ads on several factors on those placements. Like Past CPA, past campaign performance, Current trends and competition etc.

--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’