All You Need To Know About Target Cost Per Acquisition Bidding




Are you a Digital marketer and searching for ways and methods to get traffic to your website, We provide a well-defined pathway and accurate solutions for your marketing plans. This article explains what is Target Cost Per Acquisition Bidding, How it Works, Bid limit, Device Bid Adjustment and how to set Target Cost per action.

What is Target Cost Per Acquisition(CPA) Bidding?


Earlier Known as Conversion Optimizer, Cost per Acquisition or Cost per action (CPA) is a smart bidding strategy provided by Google Ads  It Optimizes the bids to get as many conversions for target CPA that you set for your Campaign.

Google Ads uses machines learning to automatically optimize bids for each and every auction.

Acquisition or Conversion could be many things, but generally, it is a click, app download, registration, form submission or sale.

You can set Target Cost per acquisition in two ways as follows:

  • Standard Strategy for Single Campaign

  • Portfolio Strategy for Multiple Campaign

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How does Target Cost per acquisition Works?


Google Ads uses Historical Data from your campaign and evaluates contextual signals such as the location of the user, type of device, remarketing list, time of the day, etc.

Target Cost Per Acquisition finds the optimal Cost per Click (CPC) bid for each and every auction made by the user.

Conversion may go more than your budget target or may go less, but Google Ads will maintain and adjust your CPC equal to the Target Cost per action that is set by you. These changes are because your actual CPA depends on various factors which aren’t under the control of Google such as Increased competition in ad auctions, changes in website or ads.


Bid Limits


Bid Limit is not recommended by Google Ads as it confines to lesser opportunities for your ads to show up whenever and wherever required. But under a limited budget and to monitor your bids closely, You can set the Maximum and Minimum bid so that your target CPA doesn’t get exhausted.


  • Maximum bid Limit

    The maximum bid which you can give to Google Ads for your Ad group or for a set of keywords while using Target Cost per acquisition Bidding.


  •  Minimum bid Limit

    The Minimum bid which you can give to Google Ads for your Ad group, set of keywords while using Target Cost per action Bidding.


Automated Bid Strategy


Managing a large Ad spent is complicated and confusing, That’s why Google Ads has an option called as Automated Bid strategy

Automated Bid strategy comes in place when you are bidding on a large volume of keywords and have a huge budget but don’t have enough time to manage the individual campaign.

Note: when you’re on less budget and having enough time to manage individual campaign the best way is to go for the Manual bidding option in Google Ads.

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Device Bid Adjustments


Device Bid Adjustment is a feature provided by Google Ads to target users based on devices. You can set bid adjustments for Mobile, Tablet, and desktop.

Getting traffic to your website is half the battle, no matter what you are selling on shopify. Making sure your website converts well is the other half of the battle. To achieve this you need to make sure your website supplies what your customers are looking for, relevant to your customer's needs.

To achieve this you need to understand your potential customer’s motivation, why are they interested in the product? Sometimes it is obvious, other times it is not.

In order to understand your customer’s motivation, you need to analyze your Google Analytics data. It is only through data and KPI reporting that you can achieve the understanding necessary to enable you to change the context of your product or service to meet your customers' needs.

The average ecommerce conversion rate is just 2-3%, meaning that 97% of your visitors will leave without buying. Through the use of your Google analytics data, a reporting tool like Conversific you can determine what to focus your AB testing and conversion rate optimization efforts on.

Ultimately your goal is to increase your conversion rate above just average and by doing so you increase the value of every dollar spent on advertising.


How to Set up Target Cost per acquisition?


Setting up Target Cost per acquisition for your Campaign is Extremely easy, Let’s Go through the below steps:


  1. Log In to your Google Ads Account

  2. Select Campaign Option and Click On Settings Tab

  3. Click on All settings and Scroll down to Bid Strategy

  4. Click on Edit option and then click change bid strategy

  5. Select Dropdown- menu and select Target Cost per acquisition

  6. Enter Target Cost per acquisition and Click Save.

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