Target CPA is a Google Ads bidding strategy that sets bids to help obtain as many conversions as possible at (or below) the target cost per action (CPA).
If the strategy has been working efficiently and is currently under the target CPA, the algorithm may increase the bids to capture more competitive conversions until it hits the target CPA.
What we did
- Applied the test to high volume Generic keywords, during a seasonal peak.
- Ran a campaign experiment, splitting traffic 50/50 on two different bid settings.
- Limited changes to the experiment and control to ensure a fair test.
- Ran the same ad copy on the control & test.
- Ringfenced budget for testing
- Continued to test until results are statistically significant to a confidence level of 99%.
- Ensured we had ample testing budget for the smart bidding test (Google recommend the daily budget being 10x your current CPA).
What we delivered
35% increase in CTR (2.89% vs 3.88%)
40% increase in click to sale % (3.37% vs 5.64%)
45% reduction in cost per sale (£122.45 CPS vs £62.38 CPS)