Benefits & Drawbacks of Google Ads Target Bidding

Google Ads Target Bidding

You do not know how much CPC will you actually pay to Google when you start PPC advertising. Do you?

The bidding method you choose plays an important part in determining the actual CPC.

Manual and smart bidding can be tried for PPC management in Google Ads. However, both these options come with pros and cons.

In this blog post, we’ll discuss the merits and demerits of Target CPA. Here’s what you’ll see in this post:

Let’s dig deeper into each of these aspects:

What Is ‘Bidding’ In Google PPC Ads?

In the early days, people just had to pay a price to Google and start displaying ads on SERPs. This concept significantly changed over time. Now, there is a competitive process to show ads against the relevant keywords.

Bidding is an important part of setting up a PPC campaign in the Google Ad account.

Cost-Per-Acquisition (AdWords CPA) is a key indicator that gives the following information:

  • The success of a PPC ad campaign
  • The bidding strategy affecting the CPA of a campaign.

Target CPA is an automated method of bidding in Google Ads that has some merits and demerits.

Our team of experts at CANZ Marketing can help you get the best CPA from Target CPA Bidding.

Let’s take a look at the two bidding methods:

Manual Bidding Vs. Target CPA Bidding

There are different ways to bid when people plan to display Google Ads and businesses can choose the one that suits them. One way is to set a price manually but there are automatic options as well.

According to Google; “target CPA is a Google Ads Smart Bidding strategy that sets bids to help get as many conversions as possible at or below the target cost-per-action (CPA) you set.”

Let’s discuss below its possible benefits and drawbacks:

Benefits Of Target CPA Bidding

A certain level of expertise and data from past campaigns is required to get better results. Target CPA technique has many advantages and here are the top three:

  • It streamlines the bidding process for ad accounts with two or more ad campaigns.
  • An advanced machine learning algorithm assists you in achieving your campaign goals.
  • Since it improves the effectiveness of CPA and CPL, it normally suits B2B businesses.

Let’s take a brief look at the drawbacks as well:

Drawbacks Of Target CPA Bidding

In the absence of expert knowledge and data from previous relevant campaigns, this method of bidding can fail to deliver auspicious results. Two major disadvantages are:

  • Obtaining the desired results can become impossible if the CPA goal is unrealistic for the industry or historical conversion data is limited.
  • This type of bidding aims for bidding on auctions that can have a higher conversion rate, budget delivery, and conversion volume can be limited.

How To Get The Best Out Of Google Ads?

You have read the pros and cons of automated bidding or target CPA bidding. It is not necessary to choose one of these options if it does not sound right for your Google PPC ads campaign.

How To Get The Best CPA From Target CPA Bidding?

The team of PPC experts at CANZ Marketing knows which bidding method will suit you. If you want to know the most relevant bidding strategy for your PPC campaign, feel free to discuss it with us.

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