How Does Target Cost-Per-Acquisition (CPA) Bidding Determine the Optimal Cost-Per-Click (cpc) Bid?

How does target cost-per-acquisition (CPA) bidding determine the optimal cost-per-click (CPC) bid?

  • It bids a static CPC value based on the current maximum CPC settings
  • It uses conversion history to set higher bids when a conversion is more likely
  • It sets CPC bids as one-tenth of the current CPA bid setting
  • It adjusts CPC bids based on existing bid adjustments

Right Answer:

  • It uses conversion history to set higher bids when a conversion is more likely

Explanation:

Conversion Path in Google Ads can easily understand via “Paths” reports. You can follow the below steps if you want to view and use the “Paths” report in Google Ads.

  • Sign in to your Google Ads account.
  • Setup Conversion Tracking in your Google Ads account.
  • Make sure your Google Ad account has already collected 30 days of conversion data from search network ads in your Google Ads reports.
  • Otherwise, you end up drawing the wrong conclusions from your analysis.
  • Click on the “Tools” tab in your Google Ads account.
  • Click on the “Search Attribution” link under the “Measurement” Section.

After going through the above steps, you can be able to view the various Path reports on your left side. The different types of Path reports are Top Paths reports, Time Lag Reports, Path Length Report etc. Similarly, there are four categories of conversion paths in Google Ads. They are Click Paths, Transition Click Paths, Impression Paths, Transition Impression Paths etc.

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