Target CPA bidding: Definition

An automated bid strategy that sets bids to help get as many conversions as possible at the target cost per action (CPA) that you set.

  • If your main advertising goal is getting conversions (like sales, signups or mobile app downloads), then Target CPA bidding can help get more conversions for your budget. It can also help you to get more sales while paying less for the clicks that lead to those purchases.
  • Target CPA bidding uses your conversion tracking data to avoid unprofitable clicks and get more conversions at a lower cost. Based on your campaign's history of conversions, Target CPA bidding finds the optimal cost-per-click (CPC) bid for your ad each time it's eligible to appear. It sets higher CPC bids for more valuable clicks and lower CPC bids for less valuable clicks.
  • Target CPA bidding requires you to set a target CPA (the average amount you'd like to pay for a conversion). The Target CPA simulator can help you estimate how changing your target CPA might affect your conversion volume.
  • A similar feature is Enhanced CPC (ECPC) which can also help you to get more sales or other conversions. The main difference is that ECPC makes adjustments to max CPC bids that you manually set, while Target CPA generates bids to try and meet your target CPA.
  • Engagements for TrueView for action ads are defined as clicks on the ad or 10 seconds of viewing time. If both happen, only the click is counted. Viewing at least 10 seconds of a video ad counts as leading to a website conversion if the conversion happens within 3 days of the engagement. For users who click on your ad, conversions will still be attributed over your current conversion window.

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