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Target CPA and Target ROAS Being Retired by Google

The one thing you can count on when it comes to PPC advertising is that things are always changing. In February, Google announced on their developer blog that they’re retiring Target ROAS and Target CPA bidding strategies. These strategies will no longer be separate from Maximize Conversions and Maximize Conversions Bid Value but will instead be integrated into them.

How Will This Affect Marketers?

This change is set to take place beginning in April 2021 and isn’t expected to have a big impact on your bidding behavior. Target CPA will be an optional setting within the Maximize Conversions bid strategy and will work the way Target CPA does now, allowing you to aim at a target cost per acquisition. Similarly, Target ROAS will be an optional setting within Maximize Conversion Value, allowing you to still bid based on targeted return on ad spend.

Why is Google Retiring These Bid Strategies?

When you use automated bidding strategies, you can save time. Machine learning can consider data points that you don’t even see. Different automated strategies are geared toward helping marketers reach specific goals, and this technology continues to evolve. One thing Google is working on is reorganizing bid strategies to make things simpler for marketers and to help advertisers lower the risk of diminishing returns.

Maximize Conversions is an example of a fully automated bidding system that’s designed to get as many conversions as possible. Up until now, when you use this strategy, conversions have been driven without considering CPAs. That meant CPAs might be a lot higher than your goal. The upcoming changes mean new threshold limits which may lead to more profitable ROAS and CPAs.

When Should You Expect Changes?

Some marketers will be able to use these new fields starting in April. As time passes, more accounts will be able to use them, and you should start to notice some changes within a few months.

Google assures marketers that several months’ notice will be given before Target CPA and Target ROAS are suspended. It’s a good idea to start experimenting with Maximum Conversions and Maximum Conversion Value bidding strategies. Whenever there’s any change in your bidding strategy, pay attention to how using these strategies affects your ROAS and CPA goals.

Expert Help with PPC Marketing and Changes to Google Bid Strategies

Getting the most return for the time and money you invest in Google Ads can be complex and often involves a learning curve. While changes to current bidding strategies won’t happen immediately, watch for announcements by Google and make sure you stay on top of changes in the world of PPC marketing. 

At Softline Solutions, experienced PPC marketers are available to walk you through what you need to know about bidding strategies, taking into account any changes as they happen to make sure you’re prepared to remain competitive. We have successfully helped many other businesses launch and grow their online presence. Get in touch with us today to learn more. We look forward to helping you meet your online potential!