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Google Ads Tip: Understanding Target Cost Per Acquisition


...You set up a manual campaign, start to get impressions, then the clicks, and then hopefully you'll start to get conversions. Once you've got about more than 30, the system knows exactly what you're looking for. It knows that now you are looking for an acquisition for $20 or 30 or a hundred and then you switch it over to the automated TCPA if that's what you want to do.

What you will say to Google is get me a lead or a customer. It doesn't matter. Whatever you are selling or whatever, you're running the campaign for, for 50 bucks. Sometimes it will go up, sometimes it's going to go down, but initially what it might do is it may go up quite a bit, maybe $120 or $130, don't get scared and don't stop! That's the worst thing you can do with any of these automated biddings stopping and starting the campaigns because everything gets reset and then it has to start learning from scratch.

So don't ever do that. Let it run, and then you'll start to see that as the system is working and optimizing, Google is going out and getting those conversions at, around that target CPA or lower and once that happens, it is going to work seamlessly and it works wonderfully well. The other important thing for running TCPA is your budget. So you need to give Google at least four to five times your TCPA.

What that means is if you're TCPA is $50, then your budget will be or should be around $200 or $250. But it needs to have that leeway. If you keep $50 as your budget or less, it's never going to work. So this is where you need to keep in mind that you need to have more budget and it will spend from time to time a lot more than what you had budgeted. But overall, over the 30 days, you will see that it is the same budget you want. But what you want to do is once you are getting a positive return on investment and you know that, okay, every time Google gives you a lead or a customer, it is around 50 or less. Now, this is just an example. It could be $5 for you.

So please don't take this as a number that you should be shooting for! So whatever your target CPA is, what you want to do is, give it at least four times the budget, the daily budget, and then let it run and see what happens. Because if you're getting a positive return on investment, then the budget should not matter. You could be spending 2000 a day because you're getting more and more business unless you've run out of stock or you cannot keep up with the number of leads. So that's the TCPA, the bidding.

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