Which type of automated bidding strategy is target cost-per-acquisition (CPA)?
Correct Answer
Conversion-focused bidding
Key takeaways
Target CPA is conversion-focused: it optimises to a cost per conversion.
It counts conversions rather than weighting them by revenue.
Use target ROAS instead when order values vary a lot.
Why is this the correct answer?
Target CPA is a conversion-focused strategy: you state what you are willing to pay for a conversion and Google bids on each auction to hit that average. It counts conversions rather than the revenue they produce, which is the distinction from the value-based strategies. Where each conversion is worth roughly the same — a lead, a signup, a booking — that is exactly what you want; where order values vary widely, target ROAS is the better fit.
Why are the other options wrong?
Consideration-focused bidding
Consideration is a mid-funnel marketing objective rather than a bidding category in Google Ads.
Revenue-focused bidding
Revenue-focused describes value-based bidding such as target ROAS or maximise conversion value, which optimise towards the money a conversion brings rather than the count.
Awareness-based bidding
Awareness-based bidding covers impression and reach strategies such as target CPM or viewable CPM.
Frequently asked questions about this topic
When should I choose target CPA over target ROAS?
When conversions are worth roughly the same to you, such as leads or signups, or when you are not passing transaction values. Target ROAS needs reliable conversion values to work; without them it has nothing to optimise against.
Where do I set a target CPA?
In the campaign's bidding settings, by choosing a conversion-focused strategy and entering the target. Check the conversion actions included in Conversions under Tools first, since the strategy optimises to whatever is counted there.
Topics in this question
About the Shopping Ads Certification
The Shopping Ads Certification checks that you can run retail campaigns end to end: product data in Merchant Center, linking it to Google Ads, and choosing between Standard Shopping and Performance Max to drive sales and value.
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