Target CPA & Manual CPC Best Practices

Do you want to know which is better, Target CPA or Manual CPC? Well, in this video I'm going to go through the pros and cons of both of these methods and help you decide which one is best for your business.

My ad account is new. Shall I use manual bidding or target CPA? My goal is to generate leads at a cost per lead of INR 100. Okay, so first of all, you want to generate leads for Rs 100. It may not be possible. What if your click cost is Rs 200 per click? Then you can't so you've got to let it run and don't have a fixed number in mind. Everybody wants the lead cost to be as low as possible, but physically it may not be possible to get that lead at that cost. So let it run. I would say manual bidding. Yeah, we can do that. Target CPA wouldn't go because we don't have any data.

As your account is very new, let it run. Start getting the clicks, and the conversions. Once you've got about 100, or 200 conversions, you will know your target CPA, whether it is Rs 30 or Rs 200. And then you need to work out. Okay, what I'm trying to do with Rs 100, is that even profitable? If it's not, then there is something wrong with the calculation of your lead cost. What is your conversion rate if that is not profitable? But if you can't take the Rs 100 lead down to Rs 80 or Rs 60, then the next best thing you can do is to increase your conversion rate. So if you are converting one out of every ten leads, then try to convert two out of every ten leads and your cost per acquisition is going to go into half and go down by half.

So all these things you need to work with and play around with all these numbers and then you'll see what is that sweet spot where you can carry on scaling it. Because if you are very aggressive or I won’t say aggressive, but you're not prepared to pay for a lead, Google will not be able to scale your campaigns. So the way this business or the way this game is played is the person or the company who is willing and able to pay the most to acquire a lead or a customer wins. So if your competitors are bidding at Rs 200 and you are bidding at Rs 100, they are going to win every time because you just don't have the bandwidth. So that's what you need to look at.

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