cost per acquisition is a biding strategy of google ads it is also known as cost per conversion. cost per acquisition is a growth marketing metric, that measures the aggregate cost of a user taking an action that leads to a conversion. The conversion can be one of many things, but in most cases, it is likely to be a sale, a purchase, a click, a sign-up, a form submission, or an app download.
why CPA is important:
1. CPA (Cost Per Action) is one of the most effective Google bidding strategies for driving conversions at an efficient cost.
2. CPA is the amount of money you’re willing and able to spend on single conversion. In this scenario, Google’s algorithm is setting your bids to maximize conversion volume within your set target CPA.
3. cost optimization and reducing the cost per acquisition can increase your return on investment (ROI) within a relatively short period.
4. Cost Per Acquisition is an important metric because it is used in the following paid marketing activities:
. Social Media
. Content Marketing
when this strategy is used:
Google Ads recommends that your campaign receives at least 30 conversions in the last 30 days in order for target CPA to perform optimally. If you’d like to try target CPA but your campaign doesn’t have this level of conversion volume, you can use portfolio bidding to apply the CPA bidding strategy across several campaigns.
your campaign doesn’t have this level of conversion volume, you can use portfolio bidding to apply the CPA bidding strategy across several campaigns.
. How Target CPA works:
. This strategy lets advertisers set a target cost per action, which Google then uses to adjust bids to generate as many conversions as possible within the target cost per action. Although individual conversions may have CPAs higher or lower than your target, Google tries to balance it out over time to achieve your Target CPA.
As an advertiser, you’re able to set bid minimums and maximums so Google doesn’t go out of your bounds. Keep in mind that this is only for portfolio use; bid caps aren’t available for individual campaigns.