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How Does CPA Bidding Work and What Can It Do For You?

To use Google’s Conversion Optimizer, conversion tracking must be enabled and you’ll need at least 15 conversions in the last 30 days. If you have fewer conversions the Google system won’t be able to make any meaningful conclusions.

Google takes into account your historical conversion data and other factors which they use to meet your conversion targets.

For every click to your website, Google has a long list of parameters. For example, the query, the user’s location, the hour of the day, etc. And they pretty much know which of these variables has worked for you in terms of conversions.

Maximum CPA and Target CPA Bidding

Max CPA Bidding – Means the maximum amount you’re prepared to pay for a conversion. This is similar to the max CPC bid where your average you pay will likely be less than the bid you set.

Target CPA Bidding – You can use this option if you want to keep your average CPA in a certain range. This is helpful if you have a specific cost per acquisition goal in mind.

However, even if you set your max CPA bid, or target CPA bid at a certain level, it does not mean that Google will meet your objectives. They will try to remain in the range you have set, but they offer no guarantee.

If you meet the minimum requirements for CPA bidding, you should ensure that your bidding strategy is in line with your advertising goals.  Keep in mind that CPA bidding is no substitute for a Google Adwords account that is poorly optimized, and will not perform wonders for you if you don’t spend time optimizing your account.

Once you’ve let the conversion optimizer run for a while, you should compare the before and after cost per acquisition rates. This is the only way to seek if CPA bidding is working for you.

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