Target CPA is a bid strategy that sets bids to help get as many conversions as possible at or below the target cost-per-action (CPA) you set. It uses machine learning to automatically optimize bids. Target CPA is available as either a standard strategy in a single campaign (for Google Ads client accounts only) or as a portfolio strategy across multiple campaigns (for all client accounts). This article explains how Target CPA bidding works and what its settings are.
Settings
Target CPA
This is the average amount you’d like to pay for a conversion. The target CPA you set may influence the number of conversions you get. Setting a target that is too low, for example, may cause you to forgo clicks that could result in conversions, resulting in fewer total conversions.
If your campaign has historical conversion data, the bidding system will recommend a target CPA. This recommendation is calculated based on your actual CPA performance over the last few weeks. When you create a new campaign, the bidding system will recommend a target CPA based on your account’s historical conversion data.
When formulating a recommended target CPA, the bidding system excludes performance from the last few days to account for conversions that may take more than a day to complete following an ad interaction. You can choose whether to use this recommended target CPA or to set your own.
Choose which conversions to optimize to
The "Include in 'Conversions'”setting lets you decide whether or not to include individual conversion actions in your "Conversions" and "Conversion value" reporting columns. The data in these columns is used by bid strategies to optimize based on the conversions that you've chosen to include. Learn more About the "Include in 'Conversions'" setting.
Bid limits
Setting bid limits for your Target CPA bid strategy isn’t recommended, because it can restrict the bidding system’s automatic optimization of your bid. It can also prevent the bidding system from adjusting your bids to the amount that best meets your target CPA.
- Max. bid limit: The highest max. CPC bid that you want to set for any keywords, ad groups or campaigns using Target CPA bidding.
- Min. bid limit: The minimum CPC bid that you want to set for any campaigns or ad groups using your Target CPA strategy.
Average target CPA
Your average target CPA is the average CPA that your bid strategy optimized for. It includes the average of your device bid adjustments, ad group target CPAs, and any changes you’ve made to your target CPA over time. Because of these variables, your average target CPA may be different from the target CPA that you set.
This metric lets you measure the CPA that your bid strategy targeted for specific time periods. By changing the date range, you can see what your strategy actually optimized for over that period. Keep in mind, you won’t have an average target CPA for time periods without traffic.
You can find this metric in your bid strategy report beside your “Actual CPA”, which represents the actual CPA that this strategy was able to achieve. You can also find this metric in the campaigns table by selecting “Avg. Target CPA” from the “Performance” category when adding a new column, or by adding it to the performance chart. Average target CPA is available for both standard and portfolio bid strategies.