Google’s two oldest automatic bidding strategies, Target CPA and Target ROAS, have finally met the day we all hope to reach eventually: they’re packing their bags and moving down to Florida because they are retiring! That’s right, as discreetly announced on their developer blog, starting this spring, Google will be moving away from Target CPA and Target ROAS as an option when picking your bidding strategy in your campaign-level settings.
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Like other recent changes Google has released this year, it will be a gradual change. But while your campaigns currently using tCPA or tROAS are safe and no changes are needed on your end, it’s never too early to prepare. In this article, we’ll:
>Review tCPA and tROAS and how they’re changing.Equip you with the tips to adjust and use this change as an opportunity.Share what the PPC community has to say.
What are tCPA and tROAS?
Let’s quickly brush up our knowledge on the soon-to-be legacy tCPA and tROAS functionalities. These two automated bidding strategies use machine learning to optimize your bids based on a goal you set: an ideal target Cost Per Acquisition or Return On Ad Spend, respectively. With these strategies, you’re essentially saying “Okay, Google, take my budget and bid whatever you need to bid to get me the most conversions at the cheapest cost or highest return percentage possible.”
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This is favorable if you are trying to get the most bang for your buck in terms of your cost per conversion, or if you are an ecommerce account with revenue tracking set up for a heavy focus on ROI.
The trouble with tCPA and tROAS
tCPA and tROAS are both two of the oldest automated bidding strategies in the Google Ads game, and with that title also comes some drawbacks—which is why I’m not all that surprised about this change.
Constant monitoring
While it’s nice to be able to pick a target, it also means you have to be constantly checking in and readjusting your target CPA or target ROAS to have it properly align with your campaign’s current performance metrics.
Yes, in an ideal world, we’d all like to shoot for a CPA of $1.00 or a ROAS of 900%, but if you set your target too far off from where you are currently at—such as setting a target CPA of $1.00 while you are currently at a $100 CPA— then Google will be fumbling around trying to figure out how it can bid
By: Susie Marino
Title: Google Is Retiring tCPA & tROAS: What You Need to Know
Sourced From: www.wordstream.com/blog/ws/2021/03/31/google-retiring-tcpa-troas
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