Get the most out of your Mondiad ad campaigns with even less effort! Here is another smart feature that automates your efforts and maximizes your results!
Long story short, as you might already know, Mondiad rolls with CPC and CPM bidding systems. But from now on we have added a new smart bidding feature to maximize your results!
DRUM ROLLS…
Enter target CPA (cost-per-acquisition), a smart bidding system which automatically adjusts your campaign costs and ad delivery to achieve a desired target CPA.
This system uses your campaign’s historical data and machine learning which measures the likelihood of your campaign to convert and automatically make adjustments to your bids, for maximum optimization.
⚠️ Target CPA is a subtype of CPA bidding. It doesn’t mean it’s a CPA price model.
What is Target CPA best for?
As per its name, Target CPA is a subtype of CPA bidding. This system is best for advertisers who want to get more conversions at a specific cost per conversion.
This is your bidding system of choice if you are an advertiser who wants to maximize the cost of your conversions when looking for leads, sales or sign-ups, for example.
Target CPA works best with offers that already have demonstrated a significant volume of conversions.
With target CPA you could either increase the conversion volume at the same cost or maintain the conversion volume but for fewer costs and more consistency.
This smart feature might be just the one for you if you want streamlined campaign management that automatically adapts to market conditions.
How does Mondiad’s Target CPA works?
Our TargetCPA algorithm operates in distinct phases to optimize campaign performance.
- Stage 1 (week 1): Learning
- Stage 2 (week 1-2): Learning & Adjusting
- Stage 3: Running
The first two phases focus on identifying the most effective segments while filtering out the underperforming ones, enabling advertisers to refine their targeting strategy to maximize results. 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.
Selecting target CPA as your bidding option when creating a campaign in Mondiad will require you to choose how much you want to pay per conversion.
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.
After the campaign is launched, this smart system automatically 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.
Mondiad Target CPA recommendations:
To help you optimize your campaign and effectively navigate our TargetCPA algorithm, here are some valuable tips and guidelines:
1. Be patient:
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. Notice target CPA is based on machine learning so it needs time to bring in results. Consequently, it is important to understand that, in this initial stage, the algorithm may not effectively adhere to the target CPA goals.
2. Choose the tCPA value wisely:
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 tCPA.
3. Start with broad targeting:
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’t add new ones. Additionally, using a smaller bid will help prevent excessive spending during 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.
4. Utilize prior knowledge:
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.
5. Avoid combining tools:
Simultaneously using “optimization rules” and tCPA is not recommended. When used together with tCPA, “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.
6. Monitor conversions:
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.
7. Consider the impact of conversion rate:
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 tCPA. It is essential to monitor the value of the conversion rate since its stability cannot be guaranteed.
And last but not least, keep in mind that achieving the exact target CPA 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.
The takeaway?
There is no one-size-fits-all strategy for an ad campaign. That’s the beauty of it. And despite the complexities of digital advertising, the more you learn about this realm, the bigger the results!
So whatever the strategy, keep doing your thing but don’t forget to spice it up from time to time. So tell us, are you thinking about going from manual CPC vs target CPA soon?
Fancy giving a try to smart bidding technology?
The early bird gets the worm!
