When it comes to optimising Google Ads campaigns, choosing the right bidding strategy can be pivotal to your success. Among the options available, “Maximise Conversions” and “Maximise Conversions with a Target CPA (Cost Per Acquisition)” are two strategies that often spark debate among advertisers. But how do they differ, and which one is most suitable for your campaign goals? In this blog, we’ll explore these two strategies, weigh their pros and cons, and offer insights into when to use each.
What is Maximise Conversions?
Maximise Conversions is a fully automated bidding strategy offered by Google Ads. Its primary goal is to generate the highest possible number of conversions (such as sales, sign-ups, or leads) within your budget. By utilising Google’s advanced machine learning capabilities, this strategy adjusts bids in real-time based on the likelihood of driving conversions.
Key Features:
- Automation: Google’s algorithm manages all bid adjustments, removing the need for manual input.
- Focus on Volume: The strategy prioritises delivering as many conversions as possible.
- No Cost Control: This approach doesn’t consider cost per acquisition, so costs may vary significantly depending on competition, demand, and user behaviour.
When to Use Maximise Conversions:
- When launching a new campaign and building data quickly is a priority.
- When you have a flexible budget and are focused on maximising conversion volume rather than cost efficiency.
What is Maximise Conversions with Target CPA?
Maximise Conversions with a Target CPA (Cost Per Acquisition) builds upon the principles of Maximise Conversions, incorporating an additional layer of cost control. Advertisers set a target CPA—essentially the maximum amount they’re willing to pay for a conversion. Google Ads then optimises bids to maximise conversions while staying as close to the target CPA as possible.
Key Features:
- Cost Control: Prioritises conversions within a specified cost range.
- Smart Bidding: Adjusts bids in real-time based on user intent, competition, and historical data.
- Balanced Approach: Strikes a balance between achieving a significant volume of conversions and maintaining cost efficiency.
When to Use Maximise Conversions with Target CPA:
- When you have a clear understanding of the value of each conversion and need to manage acquisition costs carefully.
- When your campaign has sufficient historical data for the algorithm to learn effectively.
The Pros and Cons of Maximise Conversions
Pros:
- Ease of Use: Fully automated bidding simplifies the process for advertisers.
- Maximises Volume: Ideal for campaigns prioritising a high number of conversions.
- Quick Insights: Helps gather data for future optimisation strategies.
Cons:
- Unpredictable Costs: Without cost control, CPAs can fluctuate dramatically.
- Potential Inefficiency: A focus on volume may result in low-value conversions.
- Budget Reliance: Best suited for campaigns with flexible or high budgets.
The Pros and Cons of Maximise Conversions with Target CPA
Pros:
- Cost Efficiency: Aligns campaign costs with business objectives by maintaining CPAs within a defined range.
- Data-Driven Decisions: Leverages machine learning for more effective bid adjustments.
- Improved ROI: Balances conversion volume with profitability.
Cons:
- Data Dependence: Requires historical conversion data for optimal results.
- Reduced Volume: Targeting CPA may limit the overall number of conversions achieved.
- Time to Optimise: The algorithm needs time to learn, especially if the target CPA is set unrealistically low.
How Do They Compare?
| Feature | Maximise Conversions | Maximise Conversions with Target CPA |
|---|---|---|
| Objective | Conversion Volume | Conversion Volume within Cost Targets |
| Cost Control | None | Defined by Target CPA |
| Automation Level | Fully Automated | Fully Automated |
| Historical Data Requirement | Not Essential | Essential |
| Suitability for New Campaigns | High | Low to Moderate |
| Risk of High CPAs | High | Low |
Ultimately, the choice between these strategies often depends on your campaign goals, budget flexibility, and the stage of your campaign.
Which Strategy is Right for You?
Choose Maximise Conversions If:
- You’re launching a new campaign with limited historical data.
- Conversion volume is your top priority, and cost per acquisition is less of a concern.
- You want quick insights into user behaviour to guide future campaigns.
Choose Maximise Conversions with Target CPA If:
- You’ve run campaigns previously and have robust conversion data.
- Cost control and profitability are essential for your business.
- You need to ensure a predictable cost per acquisition while maintaining steady conversion growth.
Balancing Automation with Strategy
Both Maximise Conversions and Maximise Conversions with Target CPA underscore the growing importance of automation in digital advertising. While these strategies simplify bidding processes, it’s crucial for advertisers to closely monitor campaign performance. Regular evaluations of budgets, targets, and creative elements are key to achieving optimal results.
Final Thoughts
In the ever-evolving landscape of Google Ads, there is no universal solution for all campaigns. Understanding the distinctions between Maximise Conversions and Maximise Conversions with Target CPA enables marketers to make informed decisions that align with their objectives. Whether you prioritise conversion volume or cost efficiency, a strategic approach to campaign management will lead to sustained success.
