Target CPA
- CPA stands for Cost Per Acquisition
- An acquisition basically means whenever you’re gonna get something
- The idea is to maximize conversions at a certain cost.
Example:
Digital Marketing Agency
Conversion Action = call-up
Call-up conversion rate: 25%
Average Job Value: $300
$300 x 0.25 = $75
- Based on the example, your goal is to get calls for less than $75
- This strategy doesn’t care about the cost per click (CPC) it only cares about the cost per acquisition (CPA).
Target ROAS
- ROAS stands for Return on Ad Spend
- ROAS = Revenue / Cost of ads
Example:
Revenue = $400
Cost of Ads = 100
ROAS = 4
- Tracking multiple conversion actions
- Another bidding strategy that you can use here is increasing the volume by lowering ROAS
- This is not for beginners. You’re gonna need 15 conversions within the last 30 days.
Maximize Clicks
- The goal is to get as many clicks as possible and get as much traffic (to your website) as possible.
- You want to get quick data on a certain behavior
- Disadvantages: (1) It gives Google control of the CPC; (2) The goal itself is not profitable.
- Not recommended
Maximize Conversions + Values
- It puts your full budget towards conversions
- Conversion Values allows you to change the values of the conversion such as the sales revenue or the profit margin. You’ll be able to maximize one of those.
- Trusting Google’s algorithm
- No profitable results
Target Impression Share
- The goal is to maximize impressions
- Not a profitable strategy
- You can get so many impressions but it does not mean you’re gonna get conversions
- This can be used for brand awareness
- This strategy tends to have much higher CPC
- It does not focus on profit
- Not recommended
CPA and ROAS are 2 strategies that work really well and keep getting better and better.