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Video Transcript: Maximize Conversions vs Target CPA (Google Ads Bidding Strategy)
In this video we are going to look at the maximize conversions bidding strategy for Google Ads and then compare it to the target CPA bidding strategy. Now both of these strategies rely on generating conversions and they’re all focused around getting conversions for your business. What are the pros and cons of both approaches and how can you leverage them to your advantage? Well, you’re going to learn all that and more coming up.
Hey, guys, Darren Taylor of the big marketers, I’ve come and my job is to teach you all about digital marketing. Now if that sounds up your streets, you should consider subscribing to my channel. In this video, we are looking at the maximize conversions bidding strategy. First of all, it makes sense to define exactly what the strategy is. The maximize conversion strategy does exactly what it says. It maximizes the number of conversions you can get within your budgets on Google ads.
Now, this is a strategy very much centered around that old debate in marketing and Google ads by extension of volume versus cost per conversion. Now, of course, it’s a sliding scale. The more you want to generate volume and push your volume, the higher your cost per conversion can increase because with competition and getting the keywords and targeting the keywords that are less likely to convert compared to the ones that are more likely to convert.
Putting budget into those ones is going to raise your cost per acquisition, but that is the premise of a maximized conversions campaign. It’s going to maximize the number of conversions you can get within your budget using machine learning. As I say, the machine learning is going to maximize your conversions, but the question is why would you choose to maximize your conversions using that strategy as opposed to setting a target CPA whereby you can actually go ahead and set what you want to pay for your conversions ideally in a perfect world and optimize your Google Ads campaign that way.
Well, I already made a video around the target CPA bidding strategy and I’ve linked that up in the description below so feel free to check that one out as well. Going back to maximize conversions. The reason you’d pick this strategy over target CPA is simply because as I said, you aren’t as focused on the cost of acquisition, but you’re interested in the volume. Now let me give you an example of why that would be the case. Now imagine your business really relies on having a whole team of staff to take phone calls, to take orders, to take bookings, to take meeting requests, and you want to maximize the number of leads that team is generating.
Because every second, every minute that team is not working on the lead or hasn’t got any leads in their inbox or it hasn’t got any orders to process you as a business owner or as a marketer are budding money. It’s all well and good setting a target CPA whereby you tell Google how much you ideally want to pay for a conversion. However, if your volumes are the focus of your business and you need to make sure your team are fully engaged and getting tons of volume and because otherwise, you’re paying for nothing, then you want to maximize the number of conversions you get.
As a result of that, you might end up paying a bit more for your conversions, but ultimately it’s going to maximize the volume of conversions you actually generate, which will be good for that business model. Because if you have a call center or a team sitting there with no conversions or no leads to work on, you’re wasting a lot more money than you would by spending a bit more on your conversions. Let’s compare that with the target CPA bidding strategy where you want to make sure your cost per acquisition sits in a specific place.
As a business maybe you want to manage your cashflow. Maybe you know the sweet spot for your business whereby your conversion rate dictates you should pay a certain amount per conversion and that is why you’d want to use a target CPA bidding strategy. Now, nine times out of 10 in most businesses I’ve worked in, the target CPA bidding strategy is much more effective than the maximized conversions spending strategy because it still gives you a lot of room to play with.
Now say, for example, you’re using a target CPA bidding strategy and you want to make sure you also get enough volume, you have an option to increase the amount you want to pay per conversion, thereby opening up your volumes as well so you have a bit more control over it. My advice would be if you want to maximize your conversions, which Google’s algorithm for smart bidding will do anyway, then my advice would be to focus on a target CPA and grow that strategy.
Maybe paying a bit more for your conversions in the long term, but it gives you a lot more control to roll things back if you need to tighten your belts in the future than if you use the maximize conversion strategy where essentially you’re giving Google free reign to spend your budget, how it sees fits and it will maximize your conversions hopefully. On your screen right now, you’re seeing exactly how to find the maximize conversions bidding strategy in order to make sure you can implement this onto your campaigns.
As I say, it’s not one of my favorite bidding strategies and I think there are much better ways to optimize your budget than maximizing conversions unless you have a specific use case where you can actually make sure that your team is working on leads on a consistent basis, even if it means it costs a bit more money. Thank you guys so much for watching this video. If you liked it, please leave a like below. Let me know if you have used the maximize conversions bidding strategy or if you prefer the target CPA strategy.
Let me know in the comments below. I reply to pretty much every single comment I get, especially for new videos. More important than that, don’t forget to check out the other content across my channel. Loads of tips in tutorials for you there, and more important than that, don’t forget to subscribe and I’ll see you guys on my next video.