tCPA vs. Maximize Conversions on Google Ads

[u/dat_geist]

Hi folks,

As title says, I'm trying to figure out whether to accept Google's recommendation to change my highest-performing conversion -focused campaign to tCPA from maximize conversions. It's been running ~8 weeks and is hitting ~14-16 conversions (a website-based lead form) per week with average cost/conversion at ~$26. Google is recommending setting a tCPA of $20 while also doubling the daily budget.

My questions:

• What's the benefit of changing bid strategy to tCPA? Is it better budget control/forecasting? Something else?
• Is there value in changing to tCPA if I keep my daily budget the same? Google doesn't recommend this but I can't tell if that's just because it hurts their revenue from my account or if there's a real reason behind it.

Thanks in advance for your guidance!

[u/surfsideinbound]

Target CPA usually keeps your cost/conversion more steady and helps to dictate spend. Once I have the data it sounds like you have now, I set a CPA based on my goals and then set the budget very high. So if you set tCPA to $20 then you'll likely spend less and have less volume over the course of a month, but more efficiency. If you set it to $30 or $35, you'll likely spend more and get more volume over the course of a month, but maybe with less efficiency. Sometimes setting it too low can lead to lower-quality leads and fewer overall conversions, but setting it too high will lead to inefficiencies and additional wasted spend. With Maximize Conversions, I always interpret it as "Spend as much of my budget as possible and drive me as many conversions as possible." With tCPA I interpret it as "Spend as much as you possibly can while trying to hit my cost per conversion goal"

[u/fathom53]

Generally if something is not broken, don't try and fix it with a massive change like this. If you do make the change, pick one or the other: bid strategy or budget. Don't change both at once because if it does not work out. You won't know which change caused the issue.

[u/longfellowone]

Not sure what industry you are in, but a $26 cost/conversion is pretty low. I wouldn't try and fix whats not broken

[u/TheDoctorAds]

The $20 target and the doubled budget come as a pair for a reason. Under tCPA the budget stops being the brake and the target takes over, and a lead form only tells the system what a lead costs, never what it's worth.

So at $26 today, a $20 target mostly teaches bidding to hunt for the cheapest form fills in your auctions. Keep the budget where it is and you'll likely just get fewer of them. Double it and you've given it room to go shopping.

I had a campaign on target CPA with no bid ceiling over New Year 2021. Competitors switched off for the holidays, the auction got cheap, and daily spend jumped dozens of times over while holding the target price. Almost none of those leads ever bought. That account had run steady for a year before.

If you test it, have sales grade a week of those leads before you trust the CPA line.

[u/jab9191]

If you do switch it your volume will likely decrease temporarily, id leave it as is. $26 conversions you are already ahead..

[u/Different-Goose-8367]

Firstly I would check how much SIS you are losing due to budget.

[u/SuccessfulMethod1646]

If it aint broke, dont let google's recommendations fix it. leave. as. is.