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

Last Updated On : 2018 Aug. 20


Are you a Digital marketer and searching for ways and methods to get traffic to your website, Great! Adnabu helps businesses to increase sales through Saas. We provide a well-defined pathway and accurate solutions for your marketing plans. Subscribers on weekly basis receive an insight and efficient action plans for complete campaign management and our team is here to guide you throughout the marketing journey.

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 conversion 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:

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 and time of the day etc.

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

Conversion may go more than your budgeted 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.

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

Conclusion:

If you find this article/blog Interesting and informative you can subscribe to us (AdNabu) 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.

To Automate your Google Ads(Adwords) Account and to have expert advice, Increased sales, Better conversion and more Qualified Leads, we are here to help you. Adnabu.com is Saas Marketing Automation Software. (Creates Single Product Ad Groups for Shopping Ads and Much More).