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Max Average CPA Bidding Strategy
Updated over a month ago

Please note the Max Average CPA setting is currently in BETA. In case of any feedback, please reach out to your customer success representative.

What Is Max Average CPA?

The Max Average CPA setting allows you to set a specific CPA target on your Maximize Conversions campaigns. This means our algorithm will aim to spend as much of the budget as possible without surpassing the defined Max Average CPA value.

Maximize Conversions vs. Max Average CPA - When To Use

Max Conversions

Max Average CPA

Main Goal

Spend the entire budget at the lowest possible CPA

Spend as much budget as possible while not exceeding the set CPA value

When To Use

  • When you’re looking to spend the entire budget consistently while trying to achieve the lowest possible CPA for that budget

  • When your priority is reaching a certain CPA value rather than spending the budget in full

  • If you’re experiencing large
    fluctuations in performance throughout the day (for example, if certain ad groups perform worse at the end of the
    day)

  • If you’re running campaigns with a short conversion window and high conversion volumes (preferred volume is at least 10 conversions per day)

Best Practices

  • Target CPA value has to be a realistic, reachable target (or even preferably higher than the actual target, especially in the beginning stages of the campaign).

    • Keep in mind our algorithm will always try to reach the lowest possible CPA -setting the Max Average CPA lower than what is achievable can harm performance and scale

    • Keep in mind setting the goal slightly higher will not harm performance, as the
      algorithm will always aim to achieve the lowest possible CPA with the selected
      settings

  • Increase daily budget in increments based on performance – start with a smaller daily budget and gradually increase it if you're happy with performance

Setup Instructions

  1. Navigate to Ad Group settings

  2. Select “Conversions” bidding strategy

  3. Define the Conversion definition you want to optimize for (keep in mind only 1 conversion definition can be selected if you're looking to optimize for a specific CPA)

  4. Click on "Set bid limits"

  5. Insert "Max Avg. CPA" value

FAQ

Are there any best practices in determining the Max Average CPA value?

Generally, it’s best to look at what you’re achieving in similar ad groups and add 20-30% to that value. After the exploration phase and after seeing what the campaign can actually deliver, you can lower the value (but in small increments).

Keep in mind this value should really be used as the absolute cap and not as an optimization tactic.

IMPORTANT: Setting the goal slightly higher will NOT harm performance, as the algorithm will always aim to achieve the lowest possible CPA with the selected settings

Can I use the Max Average CPA value to optimize my campaign?

It’s not a value that should often be changed, as it can disrupt performance significantly, so we do not recommend using it as an optimization tactic. As explained above, you should start with a higher value and lower it after beginning phases if your campaign is spending the budget – if you see the budgets are not being filled, increase the value.

Keep in mind the algorithm will try to achieve the lowest possible CPA, no matter the set target.

How strict is the algorithm when it comes to respecting the set value?

In the current implementation, the algorithm very strictly respects the set CPA. As this feature is still in the BETA phase, feel free to give us feedback on what you expect or how you would prefer the optimization to act in cases where we’re not filling the budgets because of CPA fluctuations.

I'm starting a new campaign and don't know what my realistic CPA value is. What setup should I use?

If you’re looking to test new ad groups, it’s best to start with our regular Conversions strategy (with no Max Average CPA), which aims to spend the budget first and allow for more efficient exploration. Once you’ve collected at least 10 conversions in the ad group and allowed the system to collect learnings, you can switch to the Max Average CPA based on the results.

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