Target CPA bidding is an automated bid strategy that sets bids to help you get as many conversions as possible at your desired average cost per conversion, which is the target cost-per-action (CPA) price you set.
- If your main advertising goal is getting conversions (like leads, signups, app downloads etc.), then Target CPA bidding can help get more conversions for your budget.
- Target CPA bidding uses your conversion tracking data to target high potential clicks and get more conversions. Based on your campaign's history of conversions, Target CPA bidding finds the optimal cost-per-click (CPC) bid for your product to gain more exposure. It sets higher CPC bids for more valuable clicks and lower CPC bids when performance was down to save cost.
- Target CPA bidding requires you to set a target CPA (the average amount you'd like to pay for a conversion).
- Some conversions may cost more than your target CPA but altogether, the algorithm will try to keep your cost per conversion as close as possible to the target CPA you set. These changes in CPA take place because your actual CPA depends on factors outside PanelPlace's control, like changes to your website or product or increased competition in auctions. Additionally, your actual conversion rate can be lower or higher than the predicted conversion rate.
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