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Google Ads – Target ROAS vs Target CPA for Ecom
Posted by on November 6, 2023 at 7:52 amHi, experts!
Do you sometimes find that Target CPA works better than Target ROAS for purchases?
It doesn’t make much sense – in theory Target ROAS should be better but I’ve been running an experiment and so far Target CPA has produced a better ROAS than Target ROAS.
What is your experience and opinion on this? -
1 Reply
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I’m always in favour of using Target ROAS for e-commerce. If it isn’t working for you, then maybe you need to adjust your ROAS targets?
The only time I have run Target CPA is when I have run single-product Shopping campaigns or campaigns with products of a similar price. Because then Target CPA makes more sense to use.
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Target CPA is easier for google than target Roas
You asking google give me as many conversions at X for my budget regardless of their value.
When you use tRoas, you asking google give me as many conversions within my target ROAS..meaning drop the conversions that dont have the target value.
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What are you selling and how much are you spending? Both of those can play a factor in what will work better for a brand.
Even if most of our ecom clients would use tROAS. If we found one was doing better with tCPA… we go with what works in the end. Every ad account can be unqiue and sometimes the common practice is what is not going to work for a brand. One reason to be careful not to only follow a playbook out there. Testing is important for a brand and ad account.
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It’s likely that something else has changed that’s affecting performance for the better. For example, you’re hitting the big shopping season, you started a sale, a competitor recently cut back their budget, etc.
tROAS is always going to be the way to go and will work substantially better than tCPA when you have widely varying prices.
If your prices are all within a few bucks there is little advantage to tROAS of course.
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