Learn All You Need To Know About Target Cost-Per-Acquisition Bidding

2018 Oct. 25

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This article explains what is Target Cost-Per-Acquisition Bidding, How it Works, Bid limit, Device Bid Adjustment and how to set Target CPA

What is Target Cost-Per-Acquisition(CPA) Bidding

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

Google Ads (AdWords) 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 CPA in two ways as follows:

  • Standard Strategy for Single Campaign

  • Portfolio Strategy for Multiple Campaign

How does Target CPA Works

Google Adwords 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 CPA 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 (AdWords) as it confines to lesser opportunities for your ads to show up whenever and wherever required. But under 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(AdWords) for your Ad group or for set of keywords while using Target CPA Bidding.

  • Minimum bid Limit:
    The Minimum bid which you can give to Google Ads(AdWords) for your Ad group, set of keywords while using Target CPA Bidding.

Automated Bid Strategy

Managing a large Ad spent is complicated and confusing, That’s why Google Ads(Adwords) 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 Manual bidding option in Google AdWords.

Device Bid Adjustments

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

How to Set up Target CPA

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

  1. Log In to your Adwords 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 CPA

  6. Enter Target CPA and Click Save


If you find this article/blog Interesting and informative you can subscribe to our Marketing expansion series and always know what’s trending on Google. Few other topics which may help are Difference between Google Ads(AdWords) Vs Google AdSense, Google Sheets Keyboard Shortcuts, Google Docs Keyboard Shortcuts.

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