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Target CPA and Target ROAS Changes Coming to Google Ads

Published on: December 7 2022 by Paid Media Pros

Target CPA and Target ROAS Changes Coming to Google Ads

Target CPA and Target ROAS Changes Coming to Google Ads

one thing that's constant in the ppc
industry is that things are always
changing even when they're not really
changing
things are still changing this video is
an example of one of those times
google recently announced that they are
getting rid of target cpa
and target row as bidding strategies and
if you hear just that headline
you might be a little bit concerned that
you're losing a valuable tool in your
account
what's actually happening is that google
is just moving the functionality of
those bidding strategies
they're no longer going to be
stand-alone they're going to be rolled
into
existing bid strategies elsewhere as an
additional setting
so in this video i want to walk you
through how you'll be able to set up
target cpa and target roads bidding
strategies moving forward
and we're going to revisit just a couple
best practikes for those bidding
strategies from a previous video
one thing to clarify before we go
further in this video is that all the
changes that i'm going to discuss today
are going to be rolled out at the
individual campaign
bid strategy level you can use these
types of bidding strategies for
portfolio level bidding strategies but
those are not going to be updated until
the coming months or year or something
like that there's not a firm deadline
if you want to learn more about google
ads portfolio bidding strategies you can
check out the video at the top of the
screen right now but for the sake of
this video
we're just going to tok about
individual campaign level bidding
strategies
since these settings live at the
campaign level i'm just going to choose
one of the campaigns i have in this
account we'll head over to the settings
tab
and then in settings we'll open up the
bidding section and here's where we're
going to spend
the bulk of the time for right now
currently the campaign is set up on
manual cpc
but if we want to change the bid
strategy just need to come in and click
change strategy
now we can adjust our bidding strategies
one of two ways
you can either use the get guidance
selecting a bid strategy which we'll go
through in a second
or you can choose simply from the drop
down above where you have all of the
bidding strategies that will auto
populate in this list and for the time
period right now
we still have the option to utilize
target cpa and target roads as
individual bid strategies but over time
this will go away
the new options are actually going to
live under maximized conversions and
maximize conversion value
so let's take the example of target cpa
first
and show how we would set that up in a
typical target cpa
bid strategy you would simply click on
that option you'll set the target cpa
and your campaign is off to the races
with the updated formatting moving
forward
you'll actually choose maximize
conversions and then here you'll see
that there is
a checkbox that will allow you to set a
target
cost per action and it's optional so if
you open this up
it'll still opt into the suggested
target cpa
and it'll look relatively similar to
what it looks like when you set a target
cpa
strategy by itself so effectively rather
than creating
a target cpa bid strategy moving forward
the functionality is that you will
choose
maximize conversions and then set an
optional target cpa
overall all of the functionality will be
the same as target cpa
it just lives in a slightly different
spot if you're utilizing retarget turn
on ad spend bidding strategies the
process is relatively similar
instead of coming in and choosing the
target row as number and then adding in
your percent as you would for a normal
target row as bid strategy will now
utilize the maximize conversion
value bidding strategy instead and just
like the maximize conversion strategy
there will be a check box down here
where you can set
an optional target return on ad spend so
the functionality will be the same
you check the box and then you add in
the percent row as that you want google
to optimize your campaigns for
exactly the same way you would for a
target return on ad spend bidding
strategy
i did mention that there's a second way
to set up these bidding strategies and
that's utilizing the guidance
rather than choosing directly from the
bidding strategy name
so let's just take a quick look at what
that looks like once i click that link
now you'll see that it's opted me into
something that looks very similar
for target row as i want to focus on
conversion value and then i still have
the check box here to set a target
return on ad spend
so if you're not comfortable choosing
directly from the naming convention of
maximize conversion value then target
row as there is a slightly different way
to do it
additionally if you want to utilize the
target cpa bidding strategy
you would optimize for conversions and
here you'll have the checkbox that'll
allow you to set a target cpa for your
campaign
overall these changes are relatively
minimal and google does
very much want to clarify that this is
simply a reorganization of existing
bidding functionality these are not
going to be completely
unique bidding strategies that are being
rolled out these are going to have the
same functionality that we've utilized
in the past
additionally when these changes roll out
if you have campaigns that are set up
on the legacy target cpa or target row
as bidding strategies
at this moment in time google is saying
that you will not have to make any
changes to your campaigns they will
simply be opted into the new structure
under maximized conversions or maximize
conversion value
with the same target cpa or target roads
that you already have set
so this isn't something where you need
to go make a lot of different changes to
your campaigns like maybe you would with
the match type changes that google
announced this year
if you don't know what that is check out
the video in the top of the screen right
now because that is something you
probably
need to take action on but these you
shouldn't have to these should
automatikally roll you into the new
structure and
everything should roll over seamlessly
and you shouldn't notike any
interruption
for the last portion of this video i
want to give you a quick recap on how
these are being reorganized
show you what they're going to look like
in the interface if you're not already
seeing it and then just revisit a couple
of best practikes around target cpa and
target row as bidding
here's a table from google that outlines
the different performance goals
the old bidding strategy and the updated
bidding strategy for you to be able to
keep them straight
if you're still trying to maximize
conversions within a set budget
they suggest utilizing maximized
conversions my opinions on that
are for a different video but then
you'll see that the updated bid strategy
is maximize conversions no target cpa
but if you do want to use a target cpa
for the second line
maximizing conversions to that target
cpa
originally you would use target cpa and
now you're going to use
maximize conversions with a target cpa
restriction in place same thing with
target return on ad spend if you don't
have a target return on ad spend
specified you'll still use the maximize
conversion value bidding strategy
but if you do have a specific benchmark
that you want to hit your old campaign
strategy would have been target row as
now it's going to be maximize conversion
value using a target row as goal when it
comes to the naming convention
in the platform things are going to look
a little bit different than they have in
the past
here's another image from that google
ads announcement post
that'll show you the bid strategy column
over here to the right
what it will look like moving forward
this has some intermixed examples here
the top two lines are what the bid
strategy type
will look like moving forward and then
you see that there is a target cpa and
target row as there in the middle
those are going to be the older versions
but as things move forward
you will start to see that your bid
strategy type will no longer just say
target cpa
or target row as it'll be a maximize
conversion value
with a target row as or a maximized
conversions
with target cpa in brackets the thing
that's not
quite clear to me is if long term
they're going to always have it look
like this because that just quite
frankly seems like a lot of words to
have in one column but my guess is
since they're showing this example after
they sunset target cpa
and target row as bidding strategies as
individual strategies
we probably will have to see this full
name of maximize conversion value target
row as
whatever gonna look a little bit clunky
but now you'll be able to see what it
looks like moving forward
we do have a video that goes over all of
the google ads bidding strategies and
gives you lots of different
insights on those and you can check that
out on the top of the screen right now
but just for sake of revisiting
on this topic i did want to give just
quick considerations around target cpa
and target roads target cpa specifically
works best when you have lots of
conversion data and you need to control
your cpas
if you don't have a lot of conversion
data google doesn't have many success
points
to gauge its performance on and it ends
up feeling like it's not
getting the returns and it usually stops
serving and just won't
hit the target cost per conversion you
have in place additionally target cpa
even when you do have lots of volume
coming through and you're hitting the
numbers that you want
in my experience and what i've heard
from others is that it does limit your
volume it's not necessarily a lot
maybe 10 to 30 percent but you do see
lower volume than you would using a
different bidding strategy so if you are
thinking about using target cpa
that's something you'll need to keep in
mind for target roads the volume
limitation
is also a consideration it's easier for
google to be more conservative
and serve only to people that it feels
more confident will convert at your goal
row as or cpa
than it is for it to take some chances
and go outside of that so you'll
probably see volume be a little bit
limited but it can work really well
again if you have lots of conversion
data if you need to control your returns
and if you have differing values based
on each conversion
so it's really helpful to find the right
return on ad spend where some
conversions
are worth a small amount and other
conversions are worth a large amount it
really helps balance those out over time
just revisiting this one last time the
headlines that you see about target cpa
and target roads going away probably
seem a little bit scary and a little bit
sensational
in reality all google is doing is
reorganizing
how their existing functionality works i
might not like it because i feel like
these are going to be a little bit more
hidden and
advertisers without as much experience
might not know that they're here because
it's not as explicit but
they didn't ask me it's not my call the
good news is that we still have the
ability to set
target cpa and target row as bidding
strategies for our campaigns
and take advantage of the functionality
that we've been enjoying for years
if you have any specific thoughts on
these changes or if you've seen some
really good success with either target
cpa or target roads or even if you've
already started opting your campaigns
into the
max conversions with the limitations set
in place
i would love to hear about your
experience or any other questions that
you have in the comments
thanks for watching our video if you
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up below
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