How To Determine The Target CPA In Google Ads

It’s vital to know how to determine cost per action (CPA) in Google Ads to reap the full benefits of your advertising budget. Our video will teach you more.

A video on Google Ads for real estate business, and if, with the net commission of example, $2000 USD, what? Okay, what can be the CPA? So what you're saying is that every time you get a conversion or a customer, you get a conversion of $2000. That means you earn $2,000. What you're asking me is, what should be the CPA? I cannot answer that for you. In fact, nobody can answer that for you. I don't know what your overheads, your lifestyle is, how your business has been set up, and so on. You can afford to pay $200 for that customer, or you can even afford to pay $1500 for a customer.

Because if that customer has got a lifetime value of, let's say, $10,000, then why wouldn't you pay more to get that lead or acquire that customer? So, without knowing your situation and how many transactions happen after that initial transaction, is the customer coming back every month? Every two months? And let's say they come back five times in the next twelve months and they're spending an average of $5000, then your customer lifetime value is quite high. And then you need to work out how much you can afford to pay to acquire a customer.

The bottom line is, in this game of online digital marketing or any kind of marketing, be it digital or offline, always remember this. The person or company willing and able to pay the most to acquire a lead or a customer wins. This is really important. I’m going to repeat that. The person or company who is able or willing to pay the most to acquire a customer or lead always wins. So you want to be very aggressive with your bidding and budgets. You don't want to get outranked or out bided by your competitors, because if your ads are showing all the time, right at the top, and on multiple platforms like Search, Display, Video, and so on, you are going to dominate your niche, and your competitors won’t be able to compete with you.

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