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.
This article explains how Target CPA bidding works and what its settings are within Search Ads 360.
On this page
Benefits
In Search Ads 360, Target CPA is available as a portfolio strategy across multiple campaigns and client accounts. This centralized approach offers several benefits:
Target CPA bidding in Search Ads 360 offers significant advantages:
- Maximizing conversion value: Leverages Google AI to automatically adjust bids and settings to get the most conversion value possible within your target CPA.
- Cross-campaign, channel, and engine optimization: Optimizes performance across an entire portfolio of campaigns, learning and adapting across different client accounts. This includes support for Google Ads and Microsoft Advertising auction-time bidding simultaneously in the same portfolios.
- Cross-engine learning for consistent performance gains across different search platforms
- Improved performance across channels and engines by leveraging portfolio optimization, shared data, and AI
- Support for advanced portfolios: Allows the use of sophisticated portfolio management with Multiple Target CPA bidding to manage multiple performance goals, while retaining manual oversight and controls.
How it works
Target CPA bidding automatically finds an optimal bid for your ad each time it's eligible to appear. It does this by using historical conversion data from your campaign and evaluating a wide range of contextual signals present at the moment of each ad auction.
For example, if you set a target CPA of $10 USD, the system will automatically adjust your bids in real time to try and achieve as many conversions as possible at an average cost of $10 USD. This real-time optimization uses signals like device type, browser, location, time of day, and remarketing lists.
While the system strives for your target, some individual conversions may cost more and some may cost less. This happens because your actual CPA can be influenced by external factors outside of Google's control, such as changes to your website or ads, increased competition in ad auctions, or fluctuations in your actual conversion rate compared to predicted rates.
However, over time, Search Ads 360 will work to keep your average cost per conversion consistent with the target CPA you set.
Supported campaigns
Search Ads 360 bid strategies can be applied to the following campaign types:
- Google Ads, Microsoft Advertising, Yahoo! JAPAN Ads, and Baidu Search campaigns
- Google Ads and Microsoft Advertising shopping campaigns
- Google Ads and Microsoft Advertising Performance Max campaigns
- Google Ads, Microsoft Advertising, and Yahoo! JAPAN Ads Dynamic Search Ad campaigns
Auction-time bidding
Search Ads 360's bidding system integrates with publisher bid strategies through auction-time bidding (ATB) to further enhance performance. Auction-time bidding means that bids are optimized at the exact moment an auction takes place, using real-time signals to set the most appropriate bid for each individual impression.
When a Search Ads 360 bid strategy uses auction-time bidding, it works in conjunction with the publisher's own automated bidding capabilities to optimize bids. Search Ads 360 provides the target CPA goal, and the publisher's system uses its real-time auction data to achieve that goal.
Bids are always optimized using auction-time bidding for Google Ads and Microsoft Advertising Performance Max campaigns.
For other campaign types, such as Search and Shopping, you can choose to enable auction-time bidding for either Microsoft Advertising or Google Ads campaigns within your Search Ads 360 bid strategy.
Advanced controls with Multiple Target CPA
For advertisers with more complex goals, Target CPA bid strategies can be combined into Multiple Target CPA strategies. This allows you to set different CPA targets for specific segments within your portfolios. You can do this for different product categories, customer segments, or geographic regions, providing greater control over your optimization goals.
Data requirements
For any Search Ads 360 bid strategy, more data generally allows the bidding system to perform better. Bid strategies with low conversion volume may experience more volatility or take longer to learn and optimize effectively.
For auction-time bidding (ATB) strategies
There are no strict minimum data requirements for auction-time bidding strategies, as they leverage real-time signals from the publisher. However, we recommend having several weeks of history and at least 2-3 conversion cycles of data before launching.
For intraday bidding strategies
We recommend having at least 20 conversions per week for optimal performance and stability of intraday bid strategies.
Settings
Review the settings listed below to learn how each affects your Search Ads 360 campaigns.
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
In Search Ads 360, when including conversions, you may choose your primary and secondary actions that support your campaign’s goal.
- Primary actions: These are reported conversion actions in the “Conversions” column and are used for bidding when the standard goal they’re part of is used for bidding.
- Secondary actions: Reported conversion actions that are for observation only. These are used for reporting in the “All conversions” column but aren’t used for bidding, even if the goal they’re part of is used for bidding. The one exception is if the secondary action is part of a custom goal, then it’s used for bidding.
Bid limits
Google doesn’t recommend setting bid limits for your Target CPA bid strategy because it can restrict the bidding system from using Google’s AI to optimize your bid. It can also prevent the bidding system from adjusting your bids to the amount that best meets your target CPA.
- Maximum bid limit (ATB and intraday): The highest CPC bid you want the bidding system to set for any keywords using target ROAS.
- For Intraday campaigns, the maximum bid limit is the highest max CPC SA360 will set at keyword level. Your final bid may be higher than this based on factors such as bid adjustments.
- Minimum bid limit (ATB and intraday): The minimum max. CPC bid you want the bidding system to set for any keywords, ad groups, or campaigns using target ROAS.
- For Intraday campaigns, the minimum bid limit is the lowest max CPC SA360 will set at keyword level. Your final bid may be lower than this based on factors such as bid adjustments.
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 discover 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 “Cost / conv.” column, 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.