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Target CPA vs Target ROAS

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# 1
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What are the basic differences between Target CPA vs Target ROAS bidding and which one is more beneficial in lead generation or signup campaigns. Can anyone help me out. 

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Accepted by topic author Rohan K
August 2016

Re: Target CPA vs Target ROAS

Rising Star
# 2
Rising Star
Hey Rohan,

With campaigns like lead generation or signup campaigns you might want to focus on Target CPA instead of Target ROAS.

First are foremost I'm curious to know if you've included values for your conversions, if not regardless you should consider setting these up now. See link below:
https://support.google.com/adwords/answer/3419241

What is the main difference? The main difference is that Target CPA is simply trying to meet your target of cost per acquisition whereas Target ROAS is offering a more complex algorithm which goes beyond simple conversions but tries to optimize your campaigns so that you receive purchase or conversions with the most value.

Personally I would recommend Target CPA compared to Target ROAS unless your sales funnel allows for a quick and clear conversion with obviously different values of lead generation or sign-up.

For more information on the difference you can read this great article:
https://support.google.com/adwords/answer/2979071

Hope this helps!
- Josh
Joshua, Rising Star
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