The goal of every ad is to generate purchases. This is why many e-shops are now shifting towards paid search bidding strategies. These focus on conversion rather than clicks.

In this article, we’ll take a closer look at the bidding strategy Maximize conversion or target CPA, how it works, and when you should use it for your Google Ads campaign.

What is the bidding strategy Max. Conversions?

Maximizing conversions is one of the simplest strategies that Google Ads offers. Using the maximum daily budget you set, Google will automatically start bidding so that you get the most conversions for your money.

If, for example, your daily budget is ‚ā¨50, Google will spend it wisely to bring you as many conversions as possible.

Before choosing this bidding strategy, make sure you set your daily budget at a reasonable level that you are willing to spend. At the end of the campaign, check the ROI to see if this strategy is leading to profitable sales.

When using this strategy, you don’t need to enter any details (except the daily budget) during setup.

TIP:
If you want to take advantage of a conversion maximization strategy, make sure you’re already tracking conversions, especially conversions that closely match your business goals.

If you do not have conversion measurement set up, or you want to check its functionality, contact us at support@shoppingin.eu and we will be happy to help you set it up.

Things to keep in mind when using this bidding strategy

If you’re ready to start using Max. conversions in Google Ads, there are a few things to keep in mind. Algorithms take about two weeks to determine how best to optimize a campaign. You may find that the performance is not improving or even drops for the first week or two, but later you will probably be able to see improvements after the algorithms are fully calibrated. Don’t give up on this strategy too soon. Whenever you implement a new bidding strategy, test it for at least 30 days.

What is target CPA (Target CPA)?

As part of the bidding strategy to maximize conversions, you have the option to set a target cost per action (CPA). It means that Google will try to get as many conversions as possible at your set target cost per action (CPA).

Target CPA is a fully automated strategy that allows you to set a target cost per acquisition at the campaign or ad group level. This option does not allow you to adjust bidding strategies at the keyword level.

With this method, Google Ads will automatically set your bids for each campaign based on your CPA. While some conversions may cost more, others may cost less to offset and align with your acquisition costs.

How to set up a bidding strategy to maximize conversions in Google Ads?

1. First, log in to your Google Ads account.
2. Click the Settings menu and select Campaign Settings. A list of all your campaigns will appear on the screen.
3. If you want to change the bidding strategy of a particular campaign, click on the name of the campaign in the list. The campaign settings menu will appear.
4. Then click on the Bidding Strategy section and then on Change Bidding Strategy.
5. At this point, click on the “select bidding strategy directly” option.
6. Finally, select Maximize Conversions and click Save to apply the changes.
7. Set a target CPA so you’re always in control of your cost per conversion.

Before implementing conversion maximization with the target CPA, remember the following:

  • The bidding strategy with a target CPA can be complicated if you don’t know what your acquisition costs are. Your CPA is simply the amount of money you can afford to spend to acquire one customer.

  • While it’s not necessary to have data in your account, it’s ideal to have data for 30-50 conversions in 30 days before setting a target CPA value.

  • If you have enough conversion data, Google Ads can even recommend a target CPA value based on your actual CPA performance over the past few weeks.

  • If you don’t have that much conversion data in your account, you might want to hold off on this option for now and just do conversion maximization as a starting point. First, get as many conversions as possible, which may also be unprofitable. Then, with the conversion data you’ve collected, you can set a target CPA.