Why does Google recommend me to put a high target CPA when I want to change to maximum conversion?

Short Answer: Google suggests setting a high target CPA initially when switching to a maximum conversion strategy. This recommendation is based on allowing more data collection and clicks to optimize the campaign before lowering the cost per conversion. However, if your previous strategy like max clicks is performing well and switching to max conversions raises your cost per lead, it’s perfectly fine to revert to max clicks.

Full Explanation

Google’s recommendation to use a higher target CPA when you transition to a maximum conversion bidding strategy is grounded in the need for data. Starting with a higher target CPA, such as $600, is suggested because it grants the algorithm freedom to gather enough conversions and clicks. This richer data pool helps in understanding your audience and behavior patterns better, which can eventually lead to reducing the cost per conversion effectively.

However, a high target CPA is not always ideal from a budgeting perspective. You want to avoid overspending early on, so collecting more clicks and data under a broader strategy can help to gradually lower your cost per conversion to a more efficient level. Once you have enough data and a more predictable cost, switching to maximum conversion bidding at a lower CPA target becomes more practical.

Step-by-Step Breakdown

Start with a broader strategy like max clicks to gather a significant volume of clicks and conversion data.
Observe your data and costs; accumulate enough data to understand typical costs per conversion.
When switching to maximum conversion bidding, set a high target CPA to allow Google’s algorithm the flexibility to explore and optimize effectively.
After some time, monitor performance and aim to reduce the target CPA based on the data gathered.
If costs increase too much under max conversions or the strategy underperforms, don’t hesitate to revert to max clicks.

Real Examples

If you have been running a max clicks strategy and it’s delivering results within your budget, switching to max conversions might initially increase your cost per lead. This higher cost isn’t necessarily an error; it reflects the learning phase of the new bidding strategy. In such cases, it’s acceptable and sometimes recommended to switch back to max clicks until more data is collected or your goals change.

Common Mistakes

Setting a low target CPA too early when switching to max conversions without enough data, leading to limited campaign reach and poor optimization.
Not monitoring the cost per lead or cost per conversion after switching strategies and not reverting if performance declines.
Ignoring the importance of data accumulation through clicks before optimizing for conversions.

FAQs

Q: Is it wrong to have a high target CPA when starting with max conversions?
A: No, it’s Google’s recommended approach to allow the algorithm enough space to learn and optimize.

Q: What should I do if my cost per lead increases when switching to max conversions?
A: It’s okay to switch back to max clicks if that strategy is working better for you.

Q: How do I know when to lower my target CPA?
A: After collecting sufficient data and getting stable conversions, you can gradually lower your target CPA to control costs.

Key Takeaways

Google recommends a high target CPA at the start of maximum conversion bidding to allow data gathering.
More clicks and data help reduce cost per conversion over time.
Switching bidding strategies may temporarily increase your cost per lead, which is normal.
Always monitor your performance and feel free to revert to a previous strategy like max clicks if it yields better results.