TCPA VS MAX CONVERSIONS

WHICH OF THESE BIDDING STRATEGIES

IS RIGHT FOR YOU?

Introduction

Advertisers using Google Ads can choose from five different bidding strategies for their campaigns, two of the most popular being Cost-Per-Action (tCPA) and Maximize Conversions.

Both methods focus on driving conversions, but each has pros and cons depending on the campaign and the desired results. Knowing the differences between the two strategies can help you decide which will best help you reach your goals.

TCPA Targeting

TCPA Targeting

Cost-Per-Action (tCPA), sometimes known as Cost Per Acquisition targeting, is a bidding strategy used to drive conversions at a predetermined cost. With this strategy, advertisers set a target tCPA that they are willing to pay for each conversion. Google Ads will then automatically adjust bids to achieve the desired tCPA.

This strategy is ideal for advertisers with a limited budget who want to ensure they are paying an optimal price for each conversion. This method may mean the business will lose out on conversions overall, but each conversion they do have will be within their specific goal.

Maximizing conversions

The Maximize Conversions bidding strategy is designed to maximize the number of conversions achieved within a given budget. This strategy allows advertisers to set a daily budget, and then Google Ads will automatically adjust bids to maximize the number of conversions that can be achieved within that budget.

This strategy is ideal for advertisers with a flexible budget who want to drive as many conversions as possible. This method means that every dollar will be spent toward conversions, even if those conversions come at different price points. Some conversions may come in very low, and some may come in very high, but the business will get the most conversions possible within the predetermined budget.

Comparison

Comparison

The main distinction between tCPA Targeting and Maximize Conversions is that tCPA Targeting aims to reach a predetermined cost-per-conversion, while Maximize Conversions seeks to maximize the number of conversions within a given budget.

tCPA Targeting is best suited for advertisers with a limited budget who want to ensure they are getting a good return on their investment (ROl) or whose goal is to generate as many conversions as possible within a limited budget.

On the other hand, Maximize Conversions is a great choice for advertisers with a larger budget who aim to acquire the highest number of conversions, regardless of cost. This is due to the strategy focusing on the total number of conversions instead of the cost-per-conversion. Therefore, it may require a larger budget to achieve the desired result. Additionally, because the bidding strategy focuses on total conversions, it may be more expensive than tCPA, which works to get conversions at a specific cost.

Conclusion

tCPA Targeting and Maximize Conversions are both effective strategies for driving conversions. Each method has pros and cons, so you need to understand your goals and budget before deciding which approach will work best for your company.

Ultimately, the right strategy depends on your specific goals and budget and the type of campaign you are running. Remember that you can change bidding strategies at any time in a campaign.

So understanding your overall goals is essential, but to truly level up your Google Ad strategy, you should know when to change your campaigns' bidding strategies in order to really scale.

Author: Christie Brady

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