If you’re curious about getting the most out of CPA (Cost Per Acquisition or Conversion) campaigns in AdWords, and you’re keen on using the CPA strategy to meet your goals, let’s dive into its benefits. But first, let’s clarify what CPA really means.
CPA is a bidding system that helps decide how much to spend for each conversion. In a general sense, it indicates the maximum amount you’re willing to invest for conversions. However, in AdWords, it doesn’t mean you’ll pay a fixed price for each conversion but rather the highest amount you’re ready to put in to gain them.
In Google AdWords campaigns, CPA adjusts your bidding to maximize conversions within the budget you set. It represents the average amount you’re willing to pay per conversion. Striking the right balance is essential: too low, and you might see no results; too high, and you could end up overspending.
To kick off a CPA campaign in AdWords, you need a record of previous conversions so that Google can set parameters for automatic bidding. The conversion optimizer will tweak your bid based on estimated conversion probabilities, making CPA campaigns attractive due to their reduced optimization time.
It’s recommended to have around 100 conversions in the last 30 days to give AdWords enough data for setting up bids effectively.
When launching a CPA campaign, start with the system’s suggested CPA. Once the campaign is stable, you can adjust the CPA manually to refine your results. Be cautious, though, because cutting the budget on these bids might reduce conversions. Using the conversion optimizer in current campaigns provides more data for better bidding.
It’s important to compare the results from CPA campaigns before and after using the conversion optimizer to gauge if your investment is paying off. You can turn off the conversion optimizer anytime, returning to the original cost setup. However, using it in online stores isn’t ideal since it ignores the conversion value, which might not be beneficial for varying transaction sizes. Other methods are advisable for e-commerce.
As always, hands-on practice is the best way to determine what works best for your site. Whether you decide to tackle it yourself or consult AdWords experts, ensure you’re well-informed beforehand to avoid wasting your investment.
