Google Ads Is Removing tCPA and tROAS Bidding Strategies

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On February 23, a quiet post went live on Google’s blog. In case you missed it, Google is soon to be removing Target CPA and Target ROAS bidding strategies, instead choosing to blend it with a tCPA and tROAS threshold with Maximise Conversions and Maximise Conversions Value. 

 

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What is actually happening?

According to Google, this does not mean the complete end of tCPA and tROAS bidding. This approach is designed to help advertisers lower the risk of diminishing returns, as to maximise conversions and maximise conversions value get more aggressive in driving revenue and lowering CPAs.

Before:

Target ROAS

Target CPA

After:

Maximize Conversions Value
Optional: Target ROAS threshold

Maximize Conversions
Optional: Target CPA threshold

Historically, Maximise Conversions has driven conversions with no regard to CPAs, resulting in CPAs that could be much higher than an advertiser’s goal. The new threshold limits will allow advertisers to circumvent this, resulting in profitable CPAs and ROAS. 

When does this change go live?

Starting in April 2021, some advertisers will start seeing Maximise Conversions and Maximise Conversions Value bidding strategies with the new CPA and ROAS threshold fields. Google has not started when tROAS and tCPA will retire, although advertisers should expect to see front end changes in the coming few months.

What does it mean for advertisers?

According to Google, the switch in bidding strategies will not cause any change in bidding behaviour. PPC advertisers should not expect to see any sweeping changes in CPAs and ROAS.

Do you need to prepare for this change?

Given what Google has shared so far, there does not appear to be a need to change anything until the threshold limits are applied. 

Advertisers could start experimenting with Max Conversions / Max Conversions Value bidding, however, bear in mind that switching to these could potentially impact your CPA and ROAS goals negatively, at least until Google actively starts rolling out the changes. 

Since the blog post, Google has not published when tCPA and tROAS will be removed, advertisers should expect to see an update in advance to this change being made live.