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

Below is the answer and explanation for 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.

Correct answer

The target CPA bid was lower than the recommended amount. ✅

Explanation

Targeting CPA bid lower than the recommended amount may cause decrement in conversions. If you notice a drop in traffic (clicks and conversions) after setting up a target CPA bid strategy, there could be a few things going on: Your target CPA might be too low. You may want to compare your target CPA to the historical average CPA of your campaign. If your target CPA is significantly below your historical average CPA, your target CPA may not be attainable while maintaining reasonable levels of traffic, and you should consider raising your target.

Given above is the answer and explanation for the question an advertiser enables target cost-per-acquisition (CPA) bidding and notices that conversions decrease. What might cause this?

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