CPA - Cost Per Acquisition

CPA (Cost Per Acquisition) in Google Ads refers to the amount you pay to acquire a conversion or customer action, such as a purchase, form submission, sign-up, or any defined goal.

1. Definition:

CPA is calculated as:

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For example:
If you spend Rs.500 on ads and get 10 conversions, the CPA is:

Your Cost Per Acquisition is Rs.50. 

2. Target CPA Bidding:

Target CPA is a Smart Bidding strategy in Google Ads.

You set a target CPA, and Google automatically adjusts bids to get as many conversions as possible at or below your target.

Example: If you set a target CPA of Rs.20, Google will aim to get conversions close to Rs.20.

3. Benefits of CPA:

• Focuses on driving conversions efficiently.
• Optimizes budget to meet your specific acquisition goals.
• Reduces manual bidding effort.
   

4. How to Use CPA in Google Ads:

• Go to your campaign settings.
• Select “Bidding” > “Target CPA” as your strategy.
• Set your target CPA value (e.g., Rs.10, Rs.50) based on your business goals.
  
  

5. Monitoring CPA:

• Use the "Conversions" and "Cost per Conversion" columns to monitor CPA performance.
• Regularly analyze which campaigns, keywords, and audiences deliver the lowest CPA.