The Benefits of Pay Per Conversion Campaigns

"image with an arrow on a target meant to signify refined strategies for GDPR compliance.

As Premier Google Partners, KATANA likes to be early adopters of AdWord’s new advertising features for powerful, impactful and profitable campaigns for our clients. The recent one we’ve been having fun with: Pay Per Conversion. We’ve found this feature to be an excellent tool for eCommerce brand campaigns.

What is Pay Per Conversion?

This is a campaign model within GDN where advertisers pay only for conversions, not clicks, and will never pay more than their set CPA. AdWords will use Target CPA bidding, but instead of charging per click, only the set CPA amount will be charged when a conversion occurs. The most powerful tool in AdWords, smart bidding, can be used risk-free on an advertiser’s Google Display Network.

What are the Benefits?

Advertisers can benefit from Pay Per Conversions by setting the Target below the average order value and launch the campaign. Positive ROAS is guaranteed in the long term, but only if it’s watched closely and CPA’s are adjusted accordingly. If conversions are not driven, then the advertiser doesn’t have to pay. If the target CPAs are too low, advertisers would be losing impression share by rank, so don’t expect to drive a high number of clicks with low target CPA’s, it’s all about finding the sweet spot. With one of our clients, we have seen 200% ROAS, generated 2 million impressions and 7.5k clicks—this is essentially a risk-free brand awareness campaign.

Our Capabilities and Tips

Though marketer’s instinct might be to direct budget towards search campaigns, we also recommend to try out a pay per conversion GDN campaign. You can try this out with an incremental budget since it’s risk-free.

For campaigns not within Google’s Display Network, We can analyze non-brand CPL’s and launch a Remarketing GDN campaign at a lower Target CPA than non-brand search campaigns as a beginning. There is no guarantee to spend high, but it would help decrease the account CPL.

 

Interested in how KATANA drives business results by creating and optimizing impactful digital media campaigns? Contact us at letstalk@katana.media, and follow our blog on Medium for best practices in digital advertising, programmatic and data science.


Also published on Medium.