Google AdWords Adds Bidding Tools For Target CPA And Target ROAS

Google launched two new bidding tools on Monday: target opt-in recommendations and Target CPA Simulator.

Let’s start with Target CPA Simulator since it’s name is intuitive. First announced during the Inside AdWords livestream this spring, the new Target CPA Simulator (pictured above) estimates what will happen to conversions if you adjust your target CPA. In the example above, the simulator estimates that if the advertiser increased the target CPA from $9.00 to $11.30, they would spend nearly $3,700 more, but generate 175 more conversions. The estimates are based on performance from the previous seven days and assume you have no budget restrictions.

The target opt-in recommendations help you set performance targets when applying a target CPA or target ROAS bid strategy to campaigns. Google will recommend targets are based on actual CPA or ROAS results from the previous two weeks. The idea is to maintain historical performance while the bidding engine optimizes to “increase conversions or revenue at that similar target”.