Switching From CPC to CPA Question

[activetrader]

I am confused as to what happens with how Adwords will display my ads if I were to switch to CPA? Right now I am getting really good CPC and CPA is very low; I wonder if I should switch to CPA ads instead but I am afraid it might affect the frequency of ad display and the position.

Any advice?

[searchnology]

Google will simply calculate the effective CPC of your CPA campaign (based on conversions and payout) to rank your ad in Adwords with other CPC ads.

This is similar to you calculating your CPA with a CPC campaign.

[activetrader]

Originally Posted by searchnology

Google will simply calculate the effective CPC of your CPA campaign (based on conversions and payout) to rank your ad in Adwords with other CPC ads.

This is similar to you calculating your CPA with a CPC campaign.

That's what I don't understand how they do it. I tried switching yesterday and my impressions plummeted. It could also be because of the time of day - when I switched from CPC to CPA it was around the time of day when people leave the office and drive home... that could be why?? But I also noticed that due to switching my CPC went up (almost doubled) suddenly, so I changed it back to CPC.... Any ideas?

[searchnology]

What is your effective CPA when you use CPC? If higher than your CPA bid then it is effectively the same as lowering your CPC bid so your traffic will decrease.

I recall talking with my Google rep and he admitted that not a lot of people use the CPA function since there really isn't any advantage over CPC. If you need improvements for your campaign it is best to tweak your keywords, bids, ads, landing page, etc. to boost your quality score and thus reduce costs and improve ROI.

[activetrader]

Originally Posted by searchnology

What is your effective CPA when you use CPC? If higher than your CPA bid then it is effectively the same as lowering your CPC bid so your traffic will decrease.

I recall talking with my Google rep and he admitted that not a lot of people use the CPA function since there really isn't any advantage over CPC. If you need improvements for your campaign it is best to tweak your keywords, bids, ads, landing page, etc. to boost your quality score and thus reduce costs and improve ROI.

Thank you for clarifying this. This is what I thought - not very effective to switch to CPA... Right now I am converting my clicks very well, so I think I will stick with CPC ads for now...