What is Google Ads Target CPA and How to Use It?

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In the ecommerce world, one of the primary goals for stores is to keep their acquisition cost—the amount spent on each new customer—as low as possible. With that in mind, adopting a bidding strategy centered around Cost Per Acquisition (CPA) in your Google Ads campaigns may seem like an attractive option at first glance.

However, Target CPA bidding strategy may not always be the most efficient way. buy phone number list
In this article, we will cover the basics of Target CPA bidding strategy, when and how you should use it in your campaigns.

What is Target CPA Bid?
Target CPA, or target cost per action, is an automated bidding strategy in Google Ads where you specify how much you want to pay per conversion. With this strategy, the effective acquisition cost of a campaign is calculated with the following formula:


Average CPA = Total Ad Spend / Total Conversions


Once you set your target CPA, Google will automatically set the cost per click for each keyword or product. In this article, the term CPA (Cost Per Action) will be used synonymously with cost per sale or cost per conversion.

How Does Target CPA Work in Google Ads?
Google Ads combines your campaign's historical conversion data with real-time signals (e.g. device type, location, browser type, time of day, browsing history) to identify users who are likely to convert.

For this strategy to be successful, conversion tracking must be enabled and your campaign must have sufficient conversions. We will explain more about this later in the article.