Google added Target CPA Bidding to Adwords Conversion Optimizer.
Google offers the automatic bid optimization tool, Adwords Conversion Optimizer, to advertisers to manage and improve Adwords campaign ROI. Adwords Conversion Optimizer’s Max CPA Bidding allows you to set the maximum CPA that you will pay for each conversion, but the maximum CPA will almost always be different to your actual cost per conversion.
For example, if your goal is to achieve an average CPA of USD20 through Max CPA Bidding, you may have to make a difficult initial guess and set your CPA to maybe USD30.
Target CPA Bidding enables you to specify the average amount (or actual cost) you will pay for a conversion.
For example, if you are to achieve an average CPA of USD20 through Target CPA Bidding, set your CPA directly to USD20.
Adwords Conversion Optimizer uses the following factors to update your keywords’ cost-per-click bids for each auction:
- The country a user is browsing from
- The search partner site or content network site your ad appears on
- The broad match keyword a searched query has matched on