An advertiser enables target cost-per-acquisition (CPA) bidding and notices that conversions decrease. What might cause this?

An advertiser enables target cost-per-acquisition (CPA) bidding and notices that conversions decrease. What might cause this?

 

• The target CPA bid was higher than the recommended amount
• The target CPA bid was lower than the recommended amount
• The conversion tracking code snippet was not added to the site
• The cost-per-click (CPC) bid was lower than the recommended amount

 

Explanation:

Using historical information about your campaign and evaluating the contextual signals present at auction-time, Target CPA bidding automatically finds an optimal CPC bid for your ad each time it’s eligible to appear. AdWords sets these bids to achieve an average CPA equal to your target across all ad groups and campaigns using this strategy. Setting bid limits for your Target CPA bid strategy isn’t recommended, because it can restrict AdWords’ automatic optimization of your bid. It can also prevent AdWords from adjusting your bids to the amount that best meets your target CPA.