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What information does a target cost-per-acquisition (CPA) bid strategy need in order to find the optimal cost-per-click (CPC) bid for an ad each time it’s eligible to appear?

What information does a target cost-per-acquisition (CPA) bid strategy need in order to find the optimal cost-per-click (CPC) bid for an ad each time it’s eligible to appear?

  • Manual bid changes
  • Forecast data
  • Historical conversion data
  • Test conversions

The correct answer is:

  • Historical conversion data

Explanation: Using historical information about your campaign and evaluating the contextual signals present at auction-time, Target CPA bidding automatically finds an optimal CPC bid for your ad each time it’s eligible to appear. Google Ads sets these bids to achieve an average CPA equal to your target across all campaigns using this strategy.

For example:

If you choose a target CPA of $10, Google Ads will automatically set your CPC bids to try to get you as many conversions at $10 on average. To help improve your performance in every ad auction, this strategy adjusts bids using real-time signals like device, browser, location, time of day, remarketing list, and more.

More read: https://support.google.com/partners/answer/6268632?hl=en

Ali Raza

Ali Raza is a Web Developer and Digital Marketing Consultant.

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