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Target CPA vs Actual amount

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi,

 

If I set a terget CPA for $10, is this the amount I will pay for all my conversions? or I can get cheaper ones as well? Will the optimizer try to reduce the CPA to a value lower than my target?

 

Thanks!

Re: Target CPA vs Actual amount

[ Edited ]
Participant ✭ ☆ ☆
# 2
Participant ✭ ☆ ☆

Hey Nessa,

If you set a ‘target CPA’  means your average CPA should be a lot closer to the CPA bid that you inserted. It can be cheaper then 10$ but i dont think that will be a big difference between amounts.

 

My thoughts!

Hope this helps!

Re: Target CPA vs Actual amount

Participant ✭ ✭ ✭
# 3
Participant ✭ ✭ ✭
Hi Nessa

If you set target CPA bidding, then it will be the average amount that Adwords system try to get for all the conversions. Some conversion can be of $20 and some conversions can be of $5 only, Adwords system will try to average the overall CPA as per your bid amount.

One more point. setting a target CPA bid of $10 doesn't mean that CPA will not go above this amount, there are certain factors which effect the CPA like competition, landing pages etc.

Read about CPA bidding on the link below:
https://support.google.com/adwords/answer/2472713?hl=en

Abhishek