Achieve more conversions at a lower or similar CPA (Cost Per Acquisition) by implementing a fully automated bidding strategy

This is a recommendation from Google Ads:

Achieve more conversions at a lower or similar cost per acquisition (CPA) by using a fully automated bidding strategy.

The Maximize Conversions bidding strategy automatically sets bids to get you as many conversions as possible at the target CPA you set. Some conversions may cost more or less than the target value. Bid adjustments for devices that are not set at -100% will be removed when you apply these recommendations to campaigns. If you use the Maximize Conversions bidding strategy, you may see changes in the number of conversions and the cost per conversion.

This is recommended because your account has enough conversion data to benefit from the “Maximize Conversions” bidding strategy, which can use data from all campaigns to optimize performance.

What does this recommendation mean?

Imagine you see a box with 100 candies, and you want to give them to as many friends as possible. Each candy costs 1 euro, so you have 100 euros to buy all the candies. Here, the candies are the “conversions” – every time someone does something you want on your website, like making a purchase, signing up for a newsletter, etc., that’s a “conversion.”

Google Ads is like a smart friend who helps you distribute the candies. It looks at all your friends and tries to guess who would want a candy the most. Sometimes it may spend 2 euros to ensure one friend gets a candy, while other times it may only spend 50 cents, depending on how much it thinks that particular friend wants a candy. This is the “target CPA” or “cost per acquisition” – how much you are willing to pay to get a conversion.

The Maximize Conversions bidding strategy means that Google Ads tries to spend all your money to get as many candies as possible. It will never spend more than you have (i.e., it won’t spend more than 100 euros if that’s your budget), but it will try to get as many candies as possible with that money.

Also, Google Ads will ignore any special rules you have set for certain types of friends (or “devices”) if you choose this strategy. For example, if you previously said, “I never want to give candies to friends who come to the party on a bicycle,” Google Ads will ignore that and give candies to those with bicycles if it believes it will help you give out more candies.

If you use this strategy, you will still pay the same amount for your advertising campaign because you won’t spend more than the budget you set. However, you may see that some conversions cost more, while others cost less because Google Ads tries to maximize the number of conversions, not to ensure that each conversion has the same price.

Do you want to know if, overall, you will pay more at the end of the month if you use the recommendation from Google Ads and the “Maximize Conversions” bidding strategy?

It’s important to note that results can vary depending on multiple factors, including the budget allocated to your campaigns, the level of competition in the market, and the effectiveness of campaign optimization. Specific financial outcomes for your campaign cannot be precisely predicted as they depend on many individual factors.

However, the goal of this bidding strategy is to achieve more conversions at the targeted cost per acquisition (CPA). If the strategy works as expected, you should obtain more conversions at a lower or similar cost. Thus, overall, you may pay less to achieve the same number of conversions or ideally, obtain more conversions at a similar cost compared to before.

It’s important to monitor the performance of your campaigns and adjust the strategy and budget based on the results obtained. This way, you can efficiently optimize the use of your advertising budget and achieve the best possible results.

The recommendation and bidding strategy provided by Google Ads are designed to help businesses optimize their performance and achieve better results in their advertising campaigns.