What bidding strategy should Tracy, a pizzeria owner, use to get more people to call her business?

This is an important question indeed. You could be in a situation such as Tracy’s and are wondering the best approach to take. Of all the options you might have had in mind, CPA comes out as the most viable for Tracy and by extension, for you. And the best CPA option would be the target CPA bidding strategy as will be explained below.

Why Target CPA Bidding?

Target CPA refers to an automatic bid strategy setting bids to help you get the most conversions at the CPA budget you set. Target CPA is a smart bidding strategy by Google Ads. The strategy sets bids to get you the most conversions at your set CPA. Target CPA makes use of machine learning to optimize bids automatically. It also has an auction-time bidding ability that tailors bids for every auction. You can use a target CPA as either a portfolio strategy encompassing multiple campaigns or a standard strategy in one campaign.

How Does Target CPA Bidding Work?

Before you even think of setting up your CPA bid strategy, you’ll have to set up conversion tracking. Target CPA uses your campaign’s historical information and evaluates the contextual signals at auction time to automatically find an ideal bid for your ads every time it is entitled to appear. Google Ads uses this strategy to set bids to achieve a CPA that is more or less equal to what you targeted across all your campaigns.

The cost of some conversions may be higher than your target while that of others may be lower. Google Ads tries to keep the cost for every conversion more or less equal to your target CPA. CPA changes happen since your actual CPA is dependent on various factors beyond Google’s control. These factors include increased completion in ad auctions and changes to your ads or website. 

In addition, you can have a higher or lower conversion rate than what you had earlier predicted. For instance, if you decide on a target CPA of $50, Google Ads automatically sets your bids to get the most possible conversions at $50 on average. The strategy can adjust bids by use of real-time signals such as device, remarketing list, time of the day, location, and browser among others in a bid to improve your performance.

Bottom Line

As a pizzeria owner like Tracy, now you know the bidding strategy to get more and more people to call your business.

Also Read: Which option can you use to capture potential business later in the day, even on a limited budget?