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How to... set CPA bids
In order for you to be profitable, you will have a maximum amount that you
can spend on each sale or lead before advertising costs exceed the value
from the successful conversion. Take time to work out how much you can,
or are willing to, spend securing conversions, while still turning a profit.
Once you know this, you can set a maximum cost-per-acquisition (CPA) bid
and Conversion Optimiser will manage your CPCs for maximum results.
How do you decide on a max CPA?
The CPA depends on the product and your margins. You may also want
to factor in the level of advertiser competition on certain keywords.
Unfortunately there is no hard and fast rule when setting CPAs - but you will
know your business best.
Recommended maximum CPA?
Conversion Optimiser will show you a recommended CPA bid based on
conversion history when you first start using it on a campaign. Setting the
max CPA to this amount will keep your costs stable when you change from
another bidding mode to the Conversion Optimiser. You should see more
conversions without much change to your costs.
Need a lower CPA to stay profitable?
Perhaps you need to lower your current cost-per-conversion for some
products to maintain profitability. In this case, gradually reduce the Ad
Group max CPA over time and monitor traffic. You should expect to see
a decrease in traffic, clicks and conversions as you lower your max CPA.
However, your conversions should fall to or below your desired cost level.
Have some budget to play with?
If you are not meeting your campaign’s daily budget, but are willing to do
so, then you can try raising the max CPA. This lets you see how many more
conversions are available at the higher CPA level.
How can I maximise conversions and ROI?
Remember, the lowest cost-per-conversion may not always lead to the
maximum profits . If you can get more conversions at a higher price per
conversion, do the total additional profits outweigh the additional costs?
Let Conversion Optimiser run for a few days per a CPA level that you want
to try, then monitor the results.