Enter TargetCPA (cost-per-acquisition), a smart bidding system which automatically adjusts your campaign costs and ad delivery to achieve a desired target CPA.<\/span><\/p><\/blockquote>\n This system uses your campaign\u2019s historical data and machine learning which measures the likelihood of your campaign to convert and automatically make adjustments to your bids, for maximum optimization.<\/span><\/p>\n Our TargetCPA algorithm operates in distinct phases to optimize campaign performance.<\/p>\n The first two phases focus on identifying the most effective segments while filtering out the underperforming ones, enabling advertisers to refine their targeting strategy<\/strong> to maximize results. <\/span>Lastly, the algorithm aims to achieve the desired target cost per acquisition (CPA) by generating as many conversions as possible within the specified CPA threshold.<\/p>\n Selecting TargetCPA as your bidding option when creating a campaign in Mondiad will require you to choose how much you want to pay per conversion.\u00a0<\/span><\/p>\n \u26a0\ufe0f Notice, you are still paying for your traffic on the CPC model but our algorithm will optimize these values to fit the target CPA model. So Mondiad keeps the cost per conversion at the target CPA value that you set for your conversions.<\/span><\/p>\n After the campaign is launched, this smart system automatically<\/strong> identifies the best ZoneIDs\/SubIds and bids to get you the best results. Note that Mondiad will also block the least-performing sections for better optimization.<\/span><\/p>\n To help you optimize your campaign and effectively navigate our TargetCPA algorithm, here are some valuable tips and guidelines:<\/span><\/p>\n 1. Be patient: 2. Choose the TargetCPA value wisely: 3. Start with broad targeting: Although you can change the campaign setup anytime, since the effectiveness of ZoneIDs and SubIDs is dynamic, we recommend you allow our algorithm to manage these sections, for better results.<\/span><\/p>\n 4. Utilize prior knowledge: 5. Avoid combining tools: 6. Monitor conversions: 7. Consider the impact of conversion rate: And last but not least, keep in mind that achieving the exact TargetCPA for every conversion is not always feasible due to several factors like competition and market dynamics, but with monitoring and optimization, results are indeed achievable.<\/span><\/p>\n [Case Study] The Power of Smart Bidding: TargetCPA<\/a><\/p><\/blockquote>\n![\"TargetCPA\"](\"https:\/\/mondiad.com\/blog\/wp-content\/uploads\/2023\/06\/TargetCPA-2-1.jpg\")
<\/a><\/p>\n
\nWhat is Mondiad’s TargetCPA Best For?<\/b><\/h2>\n
<\/a><\/p>\n\n
\nHow does Mondiad’s TargetCPA works?<\/b><\/h2>\n
<\/a><\/p>\n\n
<\/a><\/p>\n
\nMondiad TargetCPA recommendations:<\/b><\/h2>\n
<\/a><\/p>\n
\n<\/strong>During the first stage of the algorithm, which typically spans 2 weeks or up to 10 campaign conversions, the algorithm’s primary focus is to achieve satisfactory audience coverage in order to gather segment statistics. <\/span>Notice target CPA is based on machine learning so it needs time to bring in results.<\/span> Consequently, it is important to understand that, in this initial stage, the algorithm may not effectively adhere to the target CPA goals.<\/span><\/p>\n
\n<\/strong>Lowering the tCPA will lead to the algorithm filtering out segment traffic that exceeds the desired cost per acquisition. At the same time, many segments that have the potential to generate profit may underperform or be eliminated due to inconsistency with an underestimated TargetCPA.\u00a0<\/span><\/p>\n
\n<\/strong>If you have limited knowledge about the targeting, it is best to include as many potentially converting segments as possible in your initial targeting. The algorithm can filter out ineffective targeting segments but can\u2019t add new ones.\u00a0 Additionally, using a smaller bid will help prevent excessive spending during broad targeting.<\/span><\/p>\n
\n<\/strong>If you are aware of a specific narrow segment that performs well with higher bids, focus your targeting efforts accordingly. This approach allows the “expensive” segments to demonstrate their effectiveness during the algorithm’s initial stage, ensuring that resources are not wasted on “cheaper” and inefficient segments.<\/span><\/p>\n
\n<\/strong>Simultaneously using “optimization rules” and TargetCPA is not recommended. When used together with TargetCPA, “optimization rules” can potentially hinder the effectiveness of the campaign by blocking segments that could otherwise be successful. It is best to utilize each tool within separate campaigns.<\/span><\/p>\n
\n<\/strong>The algorithm performs better when there are more conversions in the campaign. If the campaign fails to generate any conversions, it indicates that the algorithm cannot appropriately adapt its interaction with the segments. The prolonged absence of conversions may be a sign of incorrect targeting.<\/span><\/p>\n
\n<\/strong>The algorithm is sensitive to changes in the conversion rate. If the conversion rate decreases for any reason, it is likely that the traffic flow will decrease as well in order to meet the desired TargetCPA. It is essential to monitor the value of the conversion rate since its stability cannot be guaranteed.<\/span><\/p>\n
\nSee our TargetCPA feature in action:<\/strong><\/h2>\n