Target Cost Per Acquisition (CPA) is a bidding strategy used in Pay-Per-Click (PPC) advertising to achieve a specific target cost for acquiring a customer or completing a conversion. In this strategy, the advertiser sets a target cost they are willing to pay for each conversion. The advertising platform (such as Google Ads or Facebook Ads) automatically adjusts bids for individual keywords or ad groups to try and meet that target cost.
This bidding strategy is based on the advertiser’s conversion tracking data. It uses machine learning algorithms to predict a conversion’s likelihood based on factors such as audience, ad relevance, and landing page experience. By setting a target CPA, advertisers can manage their budget more effectively and ensure that their advertising spending is aligned with their business objectives.
Also, See: Cost Per Impression (CPM)