If you’re running a Google Ads campaign, you’ve probably seen the “Target CPA” option when setting up your campaign. Target CPA is a bidding strategy that allows you to set a specific cost per acquisition (CPA) goal for your campaign. When you choose “Target CPA,” Google Ads will automatically adjust your bids to help you achieve your target CPA.
However, Google Ads also suggests a “recommended” CPA range for your campaign. So, what happens if you choose a CPA goal that’s lower than Google Ads recommends?
First, let’s start with what happens when you choose a CPA that’s within the recommended range. If your target CPA is in line with Google Ads’ recommendation, the platform will use its machine learning algorithms to optimize your bids and placements. It will take into account factors like:
- The past performance of your campaign
- The performance of similar campaigns
- The time of day, day of week, and other bidding windows when your ads historically perform better
When you set a CPA goal that’s within the recommended range, Google Ads will work to achieve that goal and optimize your campaign to deliver the most conversions possible within that CPA.
Now, let’s move on to what happens when you set a CPA goal that’s lower than the recommended range. When this happens, Google Ads may struggle to meet your CPA goal. Here’s why:
- You may experience decreased traffic: If your CPA goal is too low, Google Ads may not be able to deliver your ads as often as it needs to in order to generate meaningful traffic. This could result in fewer clicks and conversions overall.
- Your ad placement may suffer: In order to stay within your CPA goal, Google Ads may place your ads in less desirable or competitive positions, such as lower on the page or on less popular search queries.
- You may not see a return on investment: If your target CPA is lower than what’s realistic for your industry or campaign, your ads may not be generating enough revenue or profit to justify the cost of your advertising.
In short, setting a CPA goal that’s lower than what Google Ads recommends can result in decreased traffic, weaker ad placement, and less return on investment.
However, it’s important to note that this doesn’t mean you should always aim for Google Ads’ recommended CPA range. Depending on your business, industry, and goals, you may be able to achieve success with a lower CPA. Just make sure you’re setting a realistic goal based on your historical performance and industry benchmarks.
If you’re unsure about what CPA to set for your campaign, consider consulting with an experienced Google Ads expert or conducting thorough research on your industry and competition. With the right strategy and approach, you can set a CPA goal that aligns with your business goals and helps you achieve long-term success with Google Ads.