ZARZA We are Zarza, the prestigious firm behind major projects in information technology.
Listen "Which One Bidding Strategy Will Be Best For Services? Google Ads tROAS, tCPA or Manual CPC Bidding Strategy?"
Episode Synopsis
The No.1 Google Ads Coaching and Training Program. Watch Masterclass here: https://sfdigital.co/youtube
Which One Bidding Strategy Will Be Best For Services? Google Ads tROAS, tCPA or Manual CPC Bidding Strategy? We have 4 prices of $5. $19, $44 and $79.
Okay, now I'm a little bit confused that you have got a full pricing structure. And I believe it is for a product and not a service. So, this bit about services. It may be for products and that's what you meant. If that is so and if you are selling a product or let me go back one step. So, this is where the confusion happens. tROAS or tCPA, what are these? tROAS is the target return on ad spend. And this one is for target cost per acquisition.
If you are in the eCommerce business and you are selling products online then you need to go on the target ROAS bidding strategy if you are generating leads for your business then you need to go on the target CPA. The reason why the target CPA does not work on eCommerce. Because let's say you have got a product for $79. One person comes to your site, they will buy $79. Another one will come in. He or she may buy $79 or $19 or $5 and you will get different products being purchased by different people and the cart value will be different.
So, you can't have a target cost per acquisition because if you are targeting to acquire a customer for $50. And you are selling a $19 product. Then at the front end, you are making a loss. I'm not talking about the customer lifetime value but just at the front end. So that's why you can't do that. But if you are selling a product and you have got the target return on ad spend bidding applied that means Google is going to try and maximize your return on ad spend. And it is usually calculated in percentage. So every $1 you spend you want four or five back or more depending on your profitability. So for eCommerce websites, you need to target ROAS. For service-based or lead generation campaigns you need target CPA because a lead is a lead.
You know that you need to generate a lead for $10, $50 or $100. With regards to the manual CPC yes you can start with manual CPC get the data into the account so that the account knows and Google knows what you are looking for and then switch it over to your tROAS ads or tCPA campaigns Google is going to tell you can start right off the bat with tCPA or tROAS ads but in my experience and my humble opinion the way I would do this is set up your campaigns start with manual CPC get the data in and when you've got 30 or 50 conversions depending on how much the data is in the last how much the budget is you are spending daily. You will then switch over to tROAS or tCPA. Ideally, you want to do at least 30 conversions in the last 30 days.
Which One Bidding Strategy Will Be Best For Services? Google Ads tROAS, tCPA or Manual CPC Bidding Strategy? We have 4 prices of $5. $19, $44 and $79.
Okay, now I'm a little bit confused that you have got a full pricing structure. And I believe it is for a product and not a service. So, this bit about services. It may be for products and that's what you meant. If that is so and if you are selling a product or let me go back one step. So, this is where the confusion happens. tROAS or tCPA, what are these? tROAS is the target return on ad spend. And this one is for target cost per acquisition.
If you are in the eCommerce business and you are selling products online then you need to go on the target ROAS bidding strategy if you are generating leads for your business then you need to go on the target CPA. The reason why the target CPA does not work on eCommerce. Because let's say you have got a product for $79. One person comes to your site, they will buy $79. Another one will come in. He or she may buy $79 or $19 or $5 and you will get different products being purchased by different people and the cart value will be different.
So, you can't have a target cost per acquisition because if you are targeting to acquire a customer for $50. And you are selling a $19 product. Then at the front end, you are making a loss. I'm not talking about the customer lifetime value but just at the front end. So that's why you can't do that. But if you are selling a product and you have got the target return on ad spend bidding applied that means Google is going to try and maximize your return on ad spend. And it is usually calculated in percentage. So every $1 you spend you want four or five back or more depending on your profitability. So for eCommerce websites, you need to target ROAS. For service-based or lead generation campaigns you need target CPA because a lead is a lead.
You know that you need to generate a lead for $10, $50 or $100. With regards to the manual CPC yes you can start with manual CPC get the data into the account so that the account knows and Google knows what you are looking for and then switch it over to your tROAS ads or tCPA campaigns Google is going to tell you can start right off the bat with tCPA or tROAS ads but in my experience and my humble opinion the way I would do this is set up your campaigns start with manual CPC get the data in and when you've got 30 or 50 conversions depending on how much the data is in the last how much the budget is you are spending daily. You will then switch over to tROAS or tCPA. Ideally, you want to do at least 30 conversions in the last 30 days.
In God we trust