Target Cost Per Action Google Ads - TCPA

Target Cost Per Action Google Ads TCPA Explained Using Search Terms.

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Target Cost Per Action, or TCPA, is a Google Ads automated Smart Bidding campaign strategy setting. It’s available as a standard strategy in a single campaign, or as a portfolio strategy.

How Does TCPA work?

TCPA automatically sets bids to help maximize your campaigns possible conversions. It will aim to do this at the TPCA amount you set in the campaign settings

How Much Should I Set For My TCPA?

If you Have historical conversions measured already, Google Will suggest a TCPA for you. They measure it from your past few weeks of historical conversion data performance.

Otherwise, It’s usually good practice to put the average cost you spent for your conversions over the last 30 days, plus at least 20%. The 20 percent is for a margin to help the automated campaign slowly test other areas to help grow and optimize faster. As it optimizes, it will either get you more conversions for less. Or, it will spend the same or less, and will aim for the same amount of conversions.

Knowing how much a conversion will cost with forecasted returns is invaluable when it comes to planning, managing and growing your business. It sets benchmarks to optimize from, and gives you better control over your return on investment.

Target Cost Per Action Tips

Target Cost Per Action is more accurate and performs better with more historical conversion data. As in, the higher the amount of conversions within a 30 day period, the better Google’s algorithm can maintain and optimize performance faster. It has a better understanding of the optimal patterns to advertise towards your target audience.

TCPA Conversion Targets

Aim for at least 15 major conversions within 30 days. 30 conversions is a better target, and 50+ is where things start to get interesting. When you reach this stage, other campaign settings become available to use if you decide to grow your campaigns.

Avoid Limiting The Campaign By Budget

It is all well and good to set your Target Cost Per Action low for a conversion. However, this will actually lower your ad quality and end up reducing your conversion quantity capabilities. You will also be paying more for your conversions because you are not allowing Google to learn or optimize fast enough. In some cases, your ads might not show at all.

Recommended 3 Month TCPA Campaign Expectation Tips

  • It’s better to plan for a 3 month higher spend budget aiming to avoid limitations
  • Plan a campaign that is large enough to forecast an estimated 30+ conversion per month. This will allow time for consistent data, as well, gives Google the chance to learn efficiently
  • Then, audit and review the expectations vs results and start optimizing changes after month 1
  • Continue monitoring campaign behavior and aim to make changes every 2 to 4 weeks.

Google Ads Learning Period

Google Ads Has a learning Phase for automated bidding that usually lasts around 1 full week. During this time Ads Campaigns can be a little sporadic before leveling out and becoming more consistent with performance.

The Importance Of Setting Up Your Account Level Conversions

Account level conversions are essentially what Google Ads sees as your major conversions. When you are using automated bid strategies, these are what the campaigns will optimize themselves towards. This is why it is extremely important to have your major conversion goals align with your business lifecycle and budget.

Non-Account Level “All Conversions” Measurement

It is also possible to Add More Conversions to track minor events that your business still values in your reports. However, you might not want your automated campaigns to focus their optimizations towards. 

It’s as simple as creating the conversion and setting it as “no” as an account major conversion type in the conversion settings. These will then show up in your “all conversionsadditional column settings.

Make Sure Your Tracking Tags Are Working Correctly

Tracking tags, or also known as pixels, are related to your conversions, but on a more technical level. They are pieces of code inserted into your website for google to be able to accurately measure and track user journeys and conversions for your campaigns.

It is very important to occasionally review, test, and update your tags as your account and business grow. You especially want to make sure they are set up and firing correctly. And, that you have at least 1 conversion goal that is realistically going to show multiple conversions within a 30 day period.

Another important step is to make sure you have set up your remarketing lists. These are audience lists made from rules you set up from known patterns that your business values. The purpose of these lists is to later apply them to existing campaigns, or new campaigns to re-engage previous users into converting faster and at lower costs.

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