Term
Target CPA (tCPA)
A Google Ads Smart Bidding strategy that adjusts bids so the average cost per acquisition lands on the target value the advertiser sets.
Target CPA — in more detail
Target CPA (tCPA) is a conversion-oriented Smart Bidding strategy. The advertiser sets a target price per conversion (e.g. “€30 per lead”); Google then adjusts real-time bids so the average CPA across the campaign lands on that number. Individual conversions can come in higher or lower — what counts is the average. Prerequisites: solid conversion tracking and typically at least 30 conversions in 30 days at campaign level so the algorithm has enough signal to learn. Since 2021 tCPA is technically a mode of the “Maximize Conversions with target CPA” strategy; behavior is the same.
Example / In practice
A SaaS demo signup currently costs an average of €45. Sales calculates the unit economics work at €35 CPA. The advertiser sets tCPA to €35 — Google lowers bids on weak signals and raises them on strong ones. After a two-week learning period the average settles at around €36 with conversion volume close to the previous level.
Distinction from similar terms
tROAS maximizes revenue/value per ad spend instead of CPA. Maximize Conversions without a target CPA spends the budget without a CPA cap. Manual CPC leaves bids to the advertiser — no Smart Bidding.
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Smart Bidding
Umbrella term for the conversion- and value-based automated bid strategies in Google Ads: tCPA, tROAS, Maximize Conversions, Maximize Conversion Value. Driven by ML and real-time auction signals.
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