It is officially 2020 now. While we still don’t have flying cars, we have seen more technological advancements than we had expected by now. The world is constantly evolving and being driven by artificial intelligence and machine learning.
Amidst all these predictable and familiar inventions and trends, it is hard to find something that is going to amaze every single person sitting in the room. While we cannot expect flying cars any time soon, we will have to make do with what we have been given. Yes, we are talking about the internet and its continuous developments. Until yesterday, a PPC management agency seemed like an unfamiliar term. Today, it is target CPA. So, what is it anyway?
An Introduction to Target CPA
To know about target CPA, one must first learn what CPA really is. CPA, also known as Cost Per Action in the digital marketing environment, is a base model for pricing and online marketing measurement. CPA specifies the cost per acquisition when assessed on a campaign level, meaning how much it costs to procure a lead or sale.
Now, if you’re looking for something to do the heavy lifting and guesswork for advertising your business, CPA is really going to help you meet your performance goals. Google has many different types of bidding strategies, including manual CPC, maximize clicks, and enhanced CPC. Each of them is designed to help you achieve a specific purpose for your business.
Target CPA is, as Google defines it, a smart bidding strategy for Google Ads that set up bids to get the highest number of conversions at a pre-defined target cost.
The Working of Target CPA
As we all know, Machine Learning is huge. Using a target CPA strategy, Google uses the same technology for the automatic optimization of bids. It also offers auction-time bidding capabilities that help tailor bids for all the auctions.
It uses the historical data from the campaigns to find an optimal request for your ad each time it’s eligible to appear. It is suggested to use this strategy if you had over 15 conversions in the last 30 days to evaluate the contextual signals present at the auction timing.
An Overview of Target CPA
If you put a target CPA of £50, the system will automatically try to get you as many conversions as possible at that figure. The amount you set for the target CPA can affect the volume of conversions you receive.
Should you set the target CPA too low, you might miss the opportunity to get the clicks and subsequent leads. Some modifications may cost more than your target, and some may cost less, but altogether, Google Ads will try to keep your cost per conversion equal to the target CPA you set. Moreover, your target CPA can be applied to one campaign as well as be used as a portfolio bidding strategy and be applied to multiple campaigns.
