Refining Maximize Conversions with tCPA or tROAS
A Target CPA (tCPA) or Target ROAS (tROAS) can be applied after you have determined your average CPA or ROAS, or you can choose to set up Maximize Conversions with a tCPA or tROAS from the start – both approaches are acceptable.
However, this setting can be restrictive if it is based on assumptions without supporting data.
To avoid overly limiting the campaign early on, you may consider launching with a higher tCPA or tROAS than your ideal target.
Ecommerce tends to be simpler with automated bidding because a sale is a sale.
Lead generation, however, involves additional challenges such as lead quality issues or fake leads.
For this reason, CRM and call-tracking software integration are essential to monitor lead quality by source and ad campaign.
Get the newsletter search marketers rely on.
Boosting returns with Maximize Conversion Value
For ecommerce, Maximize Conversion Value is an excellent option for prioritizing higher-priced products over lower-priced ones to boost your overall ROAS for the campaign.
However, it’s often best to start with Maximize Conversions and switch to this setting after gathering sufficient sales data.
This option can also be applied to lead generation if different values are assigned to different leads.
For instance, filling out a form for an appointment can be assigned a higher conversion value than simply providing an email for a free download.
Portfolio bidding: Strategies for complex campaigns
Portfolio bidding refers to shared bidding strategies that can be applied to one or multiple campaigns, offering additional settings not available at the campaign level.
These strategies are particularly useful when CPCs are increasing rapidly, as portfolio bidding allows you to address this issue immediately.
Unlike campaign-level settings, portfolio bidding enables you to set both a Target CPA and a Max CPC simultaneously.
This is especially beneficial in industries where target keywords typically have low CPCs.
It can also be useful in competitive industries or for expensive keywords to avoid $200 CPCs that could harm account performance.
For instance, you can set a target CPA of $50 with a max CPC of $8.
This approach is far more effective than using the Maximize Conversions bid strategy, which may test CPCs as high as $150 – three times your target CPA.
Even with a 100% conversion rate, this would exceed your goal by a wide margin.
This is a clear example where automation benefits from human guidance to ensure it aligns with your advertising goals when its default testing logic doesn’t make sense.
Portfolio bidding can also be valuable for ecommerce.
For example, setting a target ROAS of 300% with a max CPC of $10 directs automation to adjust bids to achieve a 300% ROAS while capping clicks at $10 each.
This keeps the automation in check and focused on achieving your desired outcomes.
Performance Max: Aligning automation with campaign data
Performance Max campaigns do not always deliver “maximum performance,” as the name suggests.
For campaigns heavily reliant on automation, it is generally best to use Performance Max after establishing proof of concept with Search, Shopping, Video, or Display campaigns.
Starting with a new account that lacks performance data and expecting Performance Max to optimize everything independently is risky.
While it can sometimes succeed, it performs significantly better when supported by proven performance data, such as a customer list to help match your target audience or at least a remarketing audience of website visitors.
Exploring less common bidding strategies
Some less commonly used strategies include Target Impression Share, which adjusts bids to maximize impression share.
This prioritizes showing your ad as frequently as possible without monitoring other metrics. It is primarily used by large brands with nearly unlimited budgets.
Even for branded keywords in branded campaigns, it is unwise to pay excessive CPCs ($100 or more) just to maintain a top position.
The Maximize Clicks strategy adjusts bids to generate the highest possible number of clicks. However, this is not cost-effective for most advertisers unless they are large brands with substantial budgets.
Switching from Maximize Clicks to Maximize Conversions, a common practice, is not recommended.
Keywords that attract the most clicks do not necessarily generate the most conversions. Instead, start with manual CPC and then transition to Maximize Conversions (with or without a target CPA).
This ensures a cohesive strategy, as both approaches aim to optimize for conversions.
In contrast, gathering data through Maximize Clicks does not align with the goals of Maximize Conversions.
Additionally, Google is phasing out Enhanced CPC bidding. If you currently use this strategy, we recommend transitioning to manual CPC or an automated option in the first quarter of 2025.
Dig deeper: 10 advanced strategy ideas for Google Ads
Contributing authors are invited to create content for Search Engine Land and are chosen for their expertise and contribution to the search community. Our contributors work under the oversight of the editorial staff and contributions are checked for quality and relevance to our readers. The opinions they express are their own.