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Target CPA (Cost Per Acquisition or Action) is an ad strategy that allows you to set a value you pay for each potential customer google brings.
Once set, Google determines what keywords to bid higher and lower on based on your CPA to secure the highest leads for your business.
This bid strategy requires previous campaign data and conversion tracking for you to see results. Your past campaign data is what determines the range you can place your CPA.
Let’s say your historical data set your average CPA range at $40 to $50, and you select $40 for your current ad. Google will bid on keywords that drive the most conversion on this price. But it can also bid on those below or somewhat higher if it determines they will bring the most leads. Staying true to your set CPA, it will even out the number of high terms and low terms it shows your ads on.
Things to be mindful of in Target CPA
You need to turn on conversion tracking on your ad when using this strategy. This allows google ads to know when it is driving conversion to your business and when to adjust your bids for higher clicks.
Without enough previous campaign data, google can’t use its vast analytic tools to determine the right bidding decisions to make on your ad. It also prevents you from setting a realistic CPA to ensure you get the most returns in lead generation.
Due to the nature of CPA, google can bid on a term that will cost more or lower than you’re comfortable with. CPA limits allow you to set a value for the lowest and highest range google can go. However, this feature is only available for portfolio ads (multiple ads or ad group campaigns).
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Frequently asked questions
Of course, Target Cost Per Acquisition (CPA) can boost your sales on Google Ads by helping you set a desired cost for customer acquisition – learn more here.
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