Why Applying tROAS or tCPA Hurt Conversions

C.A. Renegado & Grace Ramal

8/16/20232 min read

Why Applying tROAS or tCPA Hurt Conversions

TROAS (target return on ad spend) and TCPA (target cost per acquisition) are bidding strategies that can be used in Google Ads to help you achieve your desired results. However, if they are not used correctly, they can actually hurt your conversions.

Here are some of the reasons why tROAS or tCPA can hurt conversions:

  • They can lead to bidding too low. When you set a target ROAS or CPA, Google Ads will try to optimize your bids to achieve that target. However, if your target is too low, Google Ads may not be able to get enough impressions or clicks to generate conversions.

  • They can lead to bidding too high. On the other hand, if your target ROAS or CPA is too high, Google Ads may bid more than necessary to achieve that target. This can lead to wasted ad spend and fewer conversions.

  • They can lead to targeting the wrong audience. When you use tROAS or tCPA, Google Ads will try to show your ads to people who are most likely to convert. However, if your target is not specific enough, Google Ads may show your ads to people who are not interested in your products or services.

  • They can lead to inconsistent results. The results of tROAS and tCPA can vary depending on a number of factors, such as the competition, the time of year, and the quality of your ads. This can make it difficult to track your progress and optimize your campaigns.

If you are using tROAS or tCPA, it is important to monitor your results closely and make adjustments as needed. You should also set realistic targets and make sure that your campaigns are well-targeted.

Here are some tips for using tROAS and tCPA effectively:

  • Set realistic targets. Your target ROAS or CPA should be based on your historical data and your goals for the campaign.

  • Monitor your results closely. Keep an eye on your conversion rate, cost per conversion, and other metrics to make sure that your campaigns are performing as expected.

  • Make adjustments as needed. If your results are not what you expected, you may need to adjust your target ROAS or CPA, your bidding strategy, or your targeting.

  • Use other bidding strategies. tROAS and tCPA are not the only bidding strategies available in Google Ads. If you are not seeing the results you want, you may want to try another bidding strategy, such as maximize conversions or maximize conversion value.

By following these tips, you can avoid the pitfalls of tROAS and tCPA and use them to achieve your desired results.