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Why is CPA bidding working so well for the Display Network?

Collaborator ✭ ✭ ✭
# 1
Collaborator ✭ ✭ ✭

Hello,

 

I have a recent experience with an account which has a very low conversion rate on the display network, at around 400 daily clicks. Once I activated the CPA bidding , the conversion rate just doubled and it has been a constant rate for the past 4 days.

 

I have never seen a similar good result ever on the Search network with CPA bidding , what are your experiences , what results did you get in conversion rates with CPA bidding for Display / Search ?

 

This is more a question about sharing experiences rather than finding a correct path to optimize a campaign for CPA.

 

Thanks

1 Expert replyverified_user

Re: Why is CPA bidding working so well for the Display Network?

Participant ✭ ✭ ✭
# 2
Participant ✭ ✭ ✭
Hi Adrian,

Just off the top of my head I would not be surprised at these kind of results at all. It all depends on what you are trying to achieve with your display network.

Usually display is used as a top-mid level funnel acquisition channel. So it is more about exposure and awareness than actual conversions. You are trying to reach more people earlier in their buying cycle.

Now this does not mean that users currently looking to buy are not on the display network, in fact they are all there, just diluted. So by using a CPA bidding on display you are indicating to AdWords that these are the people you are after.

So AdWords will then use user sessions data and account history to gauge who these audiences are more accurately. Thus you are showing your ads more to the individuals lower down the funnel than if you were just to use it as an acquisition channel.

By this you will expect a rather incremental boost in conversion rates.

There are of course a myriad of other factors to consider all dependant on the account, but it will eventually come down to sustainability. And how the competitors are reaching the same audiences as you.

Thoughts?

Re: Why is CPA bidding working so well for the Display Network?

Collaborator ✭ ✭ ✭
# 3
Collaborator ✭ ✭ ✭

Thanks Clynton, I was wondering what results did you get from CPA bidding in the Search and Display network, if you used this bidding method often. Did you encounter often positive results, or did you see mixed results ?

 

I must mention that I did not use the Target CPA suggested by the system, I used half of the recommended value.

 

Am I just lucky that CPA bidding in this case managed to double the conversion rate after a historical volume of 20.000 clicks in the Display network for this campaign , or is this a normal outcome in many other accounts too ?

Re: Why is CPA bidding working so well for the Display Network?

Participant ✭ ✭ ✭
# 4
Participant ✭ ✭ ✭
Hi Adrian,

Personally I do not use CPA bidding on display, I treat it as mainly a traffic acquisition channel. now that does not mean CPA is not a consideration as I am constantly excluding certain websites and playing with targeting options based on the quality of traffic, click assisted conversions and view through play a large role here as well.

So I would not be able to tell you from personal experience, but I do believe that it is not just luck and it is to be expected. But again there are other factors involved, for example a doubling of a 0.5% conversion rate is not quiet the same as doubling a 6% conversion rate but that is a discussion for another time.

In short, I do not believe it is luck, and I expect similar results from others. But it would be interesting to hear from individuals that are dabbling in this area extensively.

Re: Why is CPA bidding working so well for the Display Network?

Top Contributor
# 5
Top Contributor
My experience with CPA bidding is mixed.

I think there are a couple of important things to bear in mind:

Firstly Google does need to have a decent amount of data to work with - just meeting the minimums doesn't hack it. Without the data the system gets confused and the numbers tend to go all over the pace.

Secondly, and this is where I am happy @Adrian B got the result he did - there is a temptation to push the CPA target low... after all it's asking Google to target only the better performing traffic which makes sense - But what seems to happen here is that Google simply cannot find the traffic it needs to hit the target and so the traffic dries up. It's as if the system says to itself - to hit this target I need to only pitch to people who meet all these criteria - and there simply are not enough of those people for them to maintain traffic levels.

Re: Why is CPA bidding working so well for the Display Network?

Collaborator ✭ ✭ ✭
# 6
Collaborator ✭ ✭ ✭

Thank you Steve for your input.

 

I pushed the CPA bid to half the recommended amount and waited to see how much traffic I got . When I saw in a couple of hours that I got over 50.000 impressions and over 100 clicks, I was happy with this CPA amount.

I did also expect to see a very low traffic , if this would have happened I would have raised the bid but not by much. Monitoring a drop in traffic for a CPA bidding campaign should be a daily concern.