Convert your ROAS Target to a CPA Target

As a business owner you need to be aware that these two KPIs are important for the performance of your business: cost per conversion (CPA) and return on ad spend (ROAS). These two components allow you to analyze account health at a high level and make decisions at the keyword level. Even though the importance of these two KPIs is undeniable, it is quite common for advertising to be unsure which one to utilize.

Cost per acquisition or action (CPA) is a sort of conversion rate marketing. CPA is a digital marketing method for online advertising that lets an advertiser pay for a specific action taken by a potential customer.

Why is it important to know the CPA Target?
  • For ad accounts with two or more ad campaigns, it simplifies the bidding process.
  • You can achieve your advertising objectives with the help of an advanced machine learning system.
  • It suits all types of organizations because it boosts the effectiveness of CPA and CPL.
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7 Important Metrics Every Startup Founder Should Care About

Do you all know that it’s more costly to acquire new prospects than to retain existing ones! That’s why extending your CLV is essential to a healthy business model & overall business strategy… Don’t believe us? Here is an Ebook on 7 vital metrics every startup founder should know – you need to read if you want to increase profitability, retention and overall ecommerce success.

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Why these 7 metrics are significant for your business and should be measured at regular intervals?

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FAQ

Answers to Frequently Asked Questions

How to know the average order value?

The average order value (AOV) is the average amount of money spent on each transaction by each customer with your store. Using this easy technique, you can figure out what your average order value is: Average order value = total revenue/number of orders.

 

When it comes to calculating the overall order value, simply divide total revenue by the number of orders to get your company’s average order value.

What is Target ROAS?

“Target return on ad spend,” or “tROAS,” is a Google Smart Bidding strategy that stands for “target return on ad spend.” These are “auction-time bidding” automated bid tactics, which means Google will optimize for conversion or conversion value in every auction you enter.

How to find the target ROAS?

To calculate your ROAS, simply take the revenue from your campaigns, divide it by your ad expenditure, then multiply the result by 100 to get a percentage.