Target CPA Bidding in Google Ads Explained

target CPA bidding is the holy grail of Google Ads bidding strategies when it comes to bidding on campaigns where you're generating leads as opposed to generating ecommerce sales he was generating sales return on advertising spend is a much better method of generating leads but the target CPA bidding when you're generating leads let's have a look at what you should and shouldn't do when using target CPA bidding on Google Ads coming up hey guys there in Taylor of the big marketer calm and my job is to teach you all about digital marketing now if that sounds up your street you should consider subscribing to my channel and in this video we are discussing target CPA bidding the holy grail of bidding on Google ads when it comes to lead generation campaigns if you were like me and you thought that using manual CPC bidding gave you more control and you can be a bit of a control freak and then also get better results to your campaigns shifting over to a smart bidding strategy may be a bit intimidating at first but an actual fact is proven to provide better results for campaigns and of course it uses algorithms and machine learning so of course it should outperform a human so how do you implement target CPA feeding strategies on your campaigns well before you do any target CPA bidding strategy changes the first thing you need to know is your campaigns need data if you don't have enough data Google isn't going to be able to optimize your campaigns towards a target CPA successfully and when I say data I mean a significant volume of conversions going through your Google Ads account in order for it to learn what's working and what's not working in terms of generating those leads so for example if you're generating leads in your campaigns and maybe one or two leads a day and your business is happy with that then a target CPA opening strategy probably isn't for you we're generating enough leads for your business you're getting enough of what you need and the volumes are so low that moving to a target CPA bidding strategy isn't gonna help you really get more from your campaigns but if you're generating 10 20 30 40 leads per day then in that scenario target CPA bidding is gonna you because that kind of volume means google has enough data to know what's working what's not using all of its data points for the things like devices time of day location or the general optimization factors you look at but then so many more in the background that we don't get the data from Google will use that data in order to find the right results for you on on every single auction more likely to lead to a better CPA within your target CPA so imagine the search results page for a specific user and if that user fits the parameters and the profile of someone very likely to convert you could bid more if someone's less likely to convert you can bid less and it all depends on your target CPA that you set but I can already hear some of you saying if target CPA is so great I could set a CPA solo I can guarantee myself results from Google Ads with very low CPAs because I'll set the bar so low however that's a bad idea because what will happen is you'll restrict the campaign too much so if you set your target CPA at 20 pounds for example and your general CPA with a manual bidding strategy is around 50 or 60 pounds mark that's too aggressively lowering your target CPA Google is going to struggle to match 20 pound CPA costs because sheer volume of clicks versus that I guess the cost per click as well those two factors are gonna mean for Google to even try and get close to that kind of low CPA your volumes are going to drop off a cliff because if they lower the bids so much that they know they have to do because they have to try and reach that target CPA threshold then your campaign is going to store and it's eventually going to die off because you've given it too many restrictions the best thing to do is to give Google plenty of wiggle room to learn and grow and get better and do an evolution not a revolution in fact Google often give you tips and pointers on when to use target CPA bidding themselves they don't even necessarily wait for you to know whether you want to or not if you go into Google ads and look at your recommendations tab that will give you all the information you need as Google collects it in terms of what expected target CPA Google could potentially get based on the data going through your account so that will be really helpful for you as a starting point when setting up the target CPA bidding so what I'm going to right now is jump onto my computer and show you guys target CPA bidding of how to set it up in Google Ads and what to look for when setting it up as well see you in a sec hey guys so in this video I'm going to show you some target CPA bidding and how to do target CPA bidding in Google Ads so the first thing you want to do is select the campaign you want to set up target CPA bidding for so as you can see I've selected a campaign here and that will open up this menu and in the menu you want to head over to settings so now you're within settings you need to go over to bidding which is this option second from the bottom and you click on this option to expand it now when you've expanded it you'll see a number of options and you want to change your bidding strategy so I'm going to click this link to go ahead and do that so it asks you what kind of bidding strategy you want to use the one you've got selected it will be showing already so you'll see I've got target impression share as my strategy already selected so this is showing me what my strategy currently is and now what I want to do is change my bidding strategy so I'm going to click this drop down here and click on conversions and now I've done that it says you're focusing on conversions which is exactly what you want and then it says based on the selections this campaign will use a maximized conversion strategy and instead of doing that I'm going to set a target cost per action and then you can put your target CPA bid in here so this is where you would set your target CPA bid in terms of telling Google the maximum amount you're willing to pay for a conversion and again as I mentioned it's great for lead generation campaigns and once you've got enough data in order to back up what you're doing and giving the Google enough data to make good decisions it's the best thing to do so in this campaign in particular because I know the data and I know the conversions we're getting and I want to automate it I'm going to set the target CPA at 50 pounds it would be different for your campaigns of course what you would need to do is benchmark your average CPA and see how your campaigns are performing and then use Google Ads algorithm and power in order to align your paid and pushed towards the lower CPA by using this function but one thing I will say to you is if you set it too low say for example I know my average CPA from my manual managed campaign is 50 pounds and I want the target CPA to replicate that in the first instance and then start to look at bringing it down over time and getting the data from Google that's a good idea however if I were to decide I'm gonna really push Google and try and get a CPA of 20 pounds it won't work because Google first of all can't work miracles but in addition to that you're giving it too many restrictions when you give it to lower CPA so your volumes will decline the amount of clicks you get will decline your bidding will go down because Google will think in order to get a CPA that low I need to lower the bids as well in order to pay next to nothing for my clicks you won't take part in as many auctions on the Google search results and your campaign will basically die so it's important to give a sensible number in this field so once you've selected your target CPA strategy and you're targeting conversions you want to hit save and that will update your strategy to target CPA and it will set it at the level you've established as well another thing to be aware of is if you head over you're already in your campaign so I'm in a campaign at the moment I'm gonna head over to the recommendations tab now the recommendations tab tab will give you an understanding of what you can do from a target CPA bidding strategy now this account is of course a dead account so it's not gonna give me a very good up-to-date I guess up to date data but what you'll find in here if you're running an active and live campaign and what you'll find is a I guess you'll find in here a suggestion with a target CPA Google thinks it can achieve based on the data it's already collected so what I would say to you is definitely head over to the recommendations tab in order to see specifically what Google recommend your target CPA should be and what you can actually do in recommendations is you can just click one button and enable your bidding strategy to go to the target CPA Google have decided you could potentially get so it's saves a lot of time so that's how you do it really so you change your target CPA based on your historical data don't forget to check the recommendations tab as well to make sure you're being I guess selling your CPA within the recommended amount Google is looking at and that's it if you liked this video please leave a like below let me know in the comments if you are somebody who's experienced with target CPA bidding or someone who is just starting to experiment with it maybe you're like me when this first came around and you really wanted control so in the early days of Google Ads I really wanted to use manual bidding because I had control let me know if you're like me and you're a bit of a control freak apart from that check out the other content on my channel don't forget to subscribe and I'll see you guys on my next video

Channel: Darren Taylor

Views: 31,034

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Id: fTyijvloz5c

Length: 9min 34sec (574 seconds)

Published: Wed Jun 05 2019