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CPA doubled after 1 week with agency
I am sure this is 100% normal, but I got tired of running our Google ad campaigns and wanted someone to help scale/help decrease CPA as I don’t have the time to dedicate to it as a business owner.
Well, one week into the week with the new agency, our CPA went from $20 to $60 with double the spend. Someone talk me off the ledge, but I’ve never experienced this before, even when making my own changes. It’s one thing to have double CPA it’s another to have double the spend ???? if it’s double the spend with a $15 CPA, sure Jan, but can’t take a hit on both,
Is this normal and should just give it the 14-21 days to relearn?
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1 Reply
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Did this just happen? We’re on a holiday weekend check the CPA yoy to be safe. Without knowing anything else that’s my first thought.
That or they maybe using smart bidding and calibrating some account changes.
Those are the two things I would think about as I monitor.
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What changes did they make on the existing campaigns?
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I would ask the agency why ad spend doubled week over week. Ask them what the go to market strategy is to achieve your KPIs (you agreed about before working together).
If they increased campaign budgets and or widened the targeting of campaigns, then they could be front loading costs. The reason could be they are hoping that more conversions will show up this week. It’s a risky strategy since they are one week in but I have also seen worse.
As long as they have a sound strategy and tactical plan to execute, it could turn itself around. I would watch what goes on this week and next week as you need those conversions to show up to pay for that front loaded ad spend.
P.S. If these are non-PMax campaign, check your search term report to make sure your ads are triggered for the kind of searches you want.
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Did they set up an all new campaign or move you to another account? Or did they just make changes to the existing campaign on your account?
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Understand that small changes in your campaign is an attempt to improve your overall profitability.
If this continues on forever and you’re losing money sure have a difficult conversation with them and challenge what they’re doing.
But as a business owner you have to go through the initial pain to reap the rewards later. Since you’re earning money from a setup on google ads and not google ads itself, until the setup or system is ready there’s nothing in it for you.
Constant trial and error my friend.
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PPC doesn’t have an economies of scale like manufacturing ie spend more and get more efficient like you wanted to see.
PPC is spend more, and CPA will rise. How much that rises comes down to skill of the media buyer, and as well as other parts of the funnel.
You don’t say in your post, but $60 will be delivering more revenue (as a whole) and more emails for your business as opposed to $20 CPA on a smaller spend.
PPC is a journey and I would def give them time
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PPC is a lot of trial and error. I wouldn’t panic yet. It’s worth asking the agency what the plan is. They may have made changes based on and audit that identified weaker areas. Or they might be testing manual CPC to get more conversion data before moving into smart bidding.
There’s loads of reasons why CPA could have gone up. The best thing you can do is reach out to the agency and ask the questions you’ve got.
It’ll be important to let them know what the situation is if the CPA continues to be too high though. If they’re not told then they might be oblivious to the fact the CPA / ROAS isn’t sustainable for your business.
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