Maximize conversions while minimising costs with Mondiad’s TargetCPA smart bidding

May 2, 2024
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maximize-conversions

As an affiliate marketer today, finding the balance between maximising conversions and controlling costs can often feel like navigating an unending labyrinth. With this in mind, we thought this is a great occasion to introduce you to a solution that simplifies your workflow, lowers your stress levels, and overall improves your ad campaign results.

Enter TargetCPA automated bidding, not just a smart tool but also a strategic approach that empowers advertisers to achieve their conversion goals while maintaining profitable costs, all automatically.

If you are curious about understanding the potential of TargetCPA bidding, let's dwelve into its mechanics and pave the way for unlocking conversions at optimal costs.

What’s TargetCPA and how does it work?

To begin with, it is crucial to highlight that TargetCPA operates dynamically, and it is not to be confused with the CPA model, which has a set conversion value.

smart-algorithm

This smart algorithm operates in 3 distinct phases, using historical campaign data to identify patterns that provide great campaign results, as well as making real-time bid optimizations to provide consistently good results.

  • Stage 1 (week 1): Learning
  • Stage 2 (week 1-2): Learning & Adjusting
  • Stage 3: Running

Where can you best use TargetCPA bidding?

When it comes to usage, TargetCPA bidding can be applied to various types of offers; however, its efficiency will depend on multiple factors, including the industry, targeting, ad budget, the offer’s appeal, and overall campaign goals. For the sake of an example, though, let’s think about its added value role in being paired with dating offers, one of Cpamatica’s main successful verticals.

Since dating offers typically involve triggering specific actions such as sign-ups, profile creations, or subscriptions, a TargetCPA bidding strategy would work well because, in this case, we have clear, conversion goals that need to be tracked, thus we need the help of the algorithm to optimize bids towards acquiring users who are likely to perform these actions.

On another note, the dating niche can be highly competitive, with numerous advertisers vying for the same audience's attention. With this in mind, TargetCPA bidding can come in handy as an additional ace in refining targeting parameters to reach users who are most likely to engage with the dating platform.

Why should you use TargetCPA bidding?

use-targetcpa-bidding

Time-effectiveness:

Automating your tasks, including your bidding strategy will allow advertisers to spend less time manually adjusting bids and more time focusing on strategy, creative development, and other high-value tasks.

Better optimizations & higher ROI:

The smart algorithm continuously analyzes data in real-time to adjust bids for maximizing conversions but maintaining a profitable cost. This data-driven optimization leads to better performance and higher ROI.

Cost-effectiveness:

By leveraging machine learning algorithms, automated bidding helps advertisers allocate their budget more effectively by bidding higher on impressions more likely to convert and lower on less valuable impressions, ultimately reducing wasted ad spend.

Easier scaling:

Automated bidding allows advertisers to scale their campaigns quickly and efficiently, reaching a larger audience without increasing the workload on campaign management.

How can you determine your TargetCPA?

As a general rule, setting a correct TargetCPA bid lies in aligning it with the value each conversion brings to your business, to ensure profitability. Additionally, ensure your daily budget is reasonable. Setting it too low may limit exposure and traffic volume, hindering your ability to meet campaign goals. Instead, allocate sufficient resources to allow for the initial budget to be recouped and more.

Now, although it can be tempting to set a low CPA when you first approach this automated bidding strategy, it’s not the best strategy to start with. Here’s why. The target CPA algorithm typically delivers conversions at a lower price than your initially targeted cost, therefore, consider starting with higher bids. If your targeting is accurate and conversions are performing well, you'll likely achieve cheaper conversions each time.

Allow your campaign to run and gather data for a period before making further adjustments, then you can lower your bids moderately to maintain consistency and stability.

How can you tell that TargetCPA bidding is working?

Your targetCPA bidding strategy is working effectively, when

Your Target CPA value is set effectively:

Divide your total ad budget by the number of conversions you received. If this number is consistently below/close to your targetCPA value, then your strategy is working effectively.

Monitor your win rate:

A consistently high win rate can indicate that your campaign is successful, meaning that your ads are being shown to your target audience frequently.

Monitor your CR(Conversion Rate):

A higher conversion rate indicates that your ads are resonating well with your target audience and that your targeting and messaging are effective.

Check the performance of your Zone IDs and Sub IDs:

Analyze performance based on different zones and sub IDs to identify which traffic sources and placements are driving the most conversions at or below your Target CPA.

Remember to be patient and wait for your campaign to gain relevant data, then regularly monitor your statistics and optimize your campaign based on the performance data you gather. Adjust targeting, bidding, ad creatives, and landing pages to improve campaign performance and ensure that you're meeting your TargetCPA.

Check out this case study if you want to see a concrete example.

Concluding remarks

In a world where every click, impression, and interaction counts, we simply cannot oversee the efficacy of TargetCPA bidding. Through continuous data-driven optimizations, this strategy empowers advertisers and affiliates to maximize conversions while maintaining a firm grip on costs. And if you’ve been in this industry for a while, you know it's not just about reaching the right audience but also about reaching them at the right cost.

Grab your Mondiad bonus before it’s too late!

New Mondiad advertiser accounts can use the promo code “cpmtc10” to get a 10% deposit bonus on their first deposit of a minimum of 100$(up to 100$ bonus). The offer is available from 12.06 to 26.06. 

nikita
Nikita Brezhenko
Affiliate Manager
Hey there, I'm Nikita! My goal? To help you skyrocket your profits in the affiliate world. Let's dive into what works, boost those earnings per click, and enjoy the journey to success together.

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