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Daily budget vs CPA?
Posted by on January 15, 2021 at 12:13 amHey guys. I’m very new to the PPC world & I’m taking over ownership over adroll for our display ads.
One of the campaigns has a daily budget of $200 & optimization strategy is set to $200 CPA.
I’m going to decrease the daily budget to $150, should I also decrease the CPA to $150? How should I determine this?
What’s the difference between setting my optimization strategy at ‘200$ CPA’ vs just ‘conversions’?
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Clearly I don’t have a clue so any help or links to resources that could help would be much appreciated. Thank you!
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4 Replies
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CPA is cost per acquisition, so you keep it at the level which makes sense to you. If you’re not profitable at 200$ CPA, try to lower it by all means. You don’t have to lower it just because you want to lower the daily budget.
But you can lower it in order to test regardless of the budget…
Difference between CPA and ‘just’ conversions is that system will try to get you a conversion within the CPA you specified, while focusing just on conversions means system will try to squeeze out as many conversions as possible but imo CPA makes more sense cause it keeps a short leash on the system
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Daily budget should be at least equal to the CPA, if that’s not doable you should use maximize conversions. The system gets confused when the budget is lower than the target CPA and it doesn’t perform very well.
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Why not move off AdRoll and run on Google’s Display Network. It’s free and won’t be paying a fee to AdRoll. In 2021, there are few if any reasons for a business to be on AdRoll.
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I’m guessing the items you sell are high priced considering the CPA bid. You can technically make the adjustment you’re suggesting, but if it were me I’d try to keep the budget higher than the bid
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