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Optimize Target CPA & Optimize Target ROAS
Optimize Target CPA & Optimize Target ROAS
Geetanjali Tyagi avatar
Written by Geetanjali Tyagi
Updated over a week ago

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What are they?

As automated bidding doesn't allow any external modification, the way to optimize the campaign's performance is by modifying the target Cost-per-Acquisition (CPA) or Return on Ad Spend (ROAS) values at the ad group level. 

Optimizing converting ad groups that are losing impression share due to low ad rank, allows Google Ads to set a better bid at the time of auction.

The Optimize Target CPA & Optimize Target ROAS tools were created using the Rule Engine

The logic behind these tools

Google Ads Automated Bidding doesn't allow manual bid changes and therefore limits the control you can have on your keywords, product groups, etc.

The Optimize Target CPA & Optimize Target ROAS tools help you boost conversions by increasing the Target CPA or lowering the Target ROAS at the ad group level for converting ad groups missing out on a good portion of impression share due to ad rank. This way, by tweaking the targets and increasing ad rank, ad groups that are already converting may get more conversions.

Conversely, these strategies also identify the high-performing campaigns and ad groups that are already converting and capturing a lot of impression share, and exceeding the target ROAS or CPA set for them. In these cases, you can start gradually reducing the target CPA or increasing the target ROAS to direct the ad platform's algorithm in the right direction and boost ROI ultimately.

These tools automate changing targets to address both scenarios, ensuring that all ad groups and campaigns, regardless of their current status, are optimized to drive maximum results.

How to use them?

You can access the Optimize Target CPA tool here and the Optimize Target ROAS tool here. The following instructions work the same on both tools.

On the left side, choose the campaign and rule you want to optimize. You'll see data displayed for Target CPA (old), Target CPA (new), Bid Strategy Type, Conversions, and Search Lost IS. Once you've reviewed this, head over to the Apply Suggestions button to make the changes.

Downloading Results 

You can download the suggestion results as a .CSV file as well, even if you don't apply the changes. Inside the file, you'll see two extra columns: Min. Target CPA and Max. Target CPA.

The Optimize Target CPA & Optimize Target ROAS optimizations are built using the Rule Engine, and in order to return a suggested Target CPA that preserves certain boundary values, it creates two metrics: Min. Target CPA, and Max. Target CPA.

These two extra columns are, therefore, not benchmark metrics but rather set boundary values.

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