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Master Target CPA bidding and maximize your ROI

natalia.juszczak 2024-03-28 6

Remember our old partner, ad network Mondiad? Mondiad is a self-service, versatile ad network providing an inventory of +10B impressions & +30M clicks daily traffic worldwide via multiple ad formats, verticals, and bidding models. One great thing about this network is that it aims to provide smart performance tools (like their optimization rules we previously presented) designed to skyrocket the ROI of your advertising campaigns.

Speaking of smart features, this is exactly what we are looking to explore in this article. Have you ever heard of automatic bidding for your advertising campaign? Let us introduce you to Mondiad’s TargetCPA bidding!

What is Mondiad’s Target CPA bidding?

First of all, it’s important to highlight not to confuse the TargetCPA with the CPA bidding model. To put it simply, with CPA (Cost Per Acquisition), you get a fixed cost for each conversion while with TargetCPA, things are more dynamic.

The Mondiad TargetCPA bidding aims for a particular cost per acquisition using an algorithm that determines the optimal bid for each ad based on the likelihood of a conversion, while still using the CPM/CPC model.

Where can it be used?

The best usage for TargetCPA bidding depends on various factors, including your advertising goals, budget, niche, and target audience, however, there are several scenarios where TargetCPA bidding tends to be particularly effective. As per its name, TargetCPA is best for advertisers who want to get more conversions at a specific cost per conversion, whether you’re looking for leads, sales or sign-ups:

  • If your primary goal is to generate leads for your business, Target CPA bidding can be highly effective, allowing you to acquire leads at a predictable cost.
  • In the e-commerce niche, TargetCPA bidding can help drive sales while maintaining a profitable cost-per-acquisition. By setting your Target CPA based on your average order value and profit margins, you can optimize your campaigns to maximize revenue.
  • If you're promoting subscription-based services or membership programs, TargetCPA bidding can be a great choice for acquiring new subscribers or members at a sustainable cost. You can set your Target CPA based on the lifetime value of a subscriber or member.

Why should it be used?

Who doesn't like automation today? This algorithm is your reliable helping hand in boosting your campaign results while saving you time and money.

TargetCPA's advantages

-> Save on conversion costs.

Target CPA bidding typically provide bids lower than your specified CPA target, resulting in cost savings for your conversions.

-> Real-time, automated optimizations!

Use automated bidding to free up time and focus on better tasks such as refining ad creatives or developing new strategies. Once you’ve placed your bid, the algorithm will go after the right traffic segments for you, taking into account all real-time fluctuations and adjusting accordingly.

-> Knowledge is key!

Mondiad's TargetCPA bidding uses historical campaign performance data to continuously make bid adjustments towards better conversions. This data-driven approach helps advertisers leverage insights into user behaviour and campaign performance to improve overall ad performance.

-> A plus in beating the competition!

We all know programmatic advertising is a highly competitive landscape, thanks to its profitability. With this in mind, an extra tool helps maintain campaign effectiveness over time.

How does Mondiad’s Target CPA work?

The Mondiad TargetCPA algorithm operates in 3 distinct phases, to optimize campaign performance.

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

TagetCPA's stages

Stage 1 and 2 are working on automatically understanding what ZoneIDs/SubIds/bids work best/worst, enabling advertisers to improve their ad campaign targeting for better results, while stage 3 focuses on achieving as many conversions as possible within the desired target cost per acquisition.

How to determine the Target CPA?

Target CPA bidding works best when you have a clear understanding of your target audience and can effectively target your ads to reach those potential customers. 

As a general rule, start with higher bids aligned with the value of conversions, maintain a reasonable daily budget, and allow your ad campaign time to gather data before making adjustments

However, 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), however, with ad campaign monitoring and optimization, results are indeed achievable.

If you're unsure about setting the right Target CPA for your campaign, consider seeking advice from Mondiad’s account managers who are ready to help anytime.

Mondiad’s recommendations:

1. Start with clear campaign goals:

What is it you want to achieve with your advertising campaigns? Are you aiming for direct sales, leads, sign-ups...? Different types of conversions may have different values to your business, so it's essential to align your Target CPA with your specific goals.

2. Analyze historical data (if available): 

If you have data from previous ad campaigns, it's a good idea to have a look at it and try to identify patterns that can further help you set realistic TargetCPA goals. For example, if you have prior knowledge on specific segments that perform well with higher bids, let them demonstrate their effectiveness. 

3. Start with a broader targeting(if you don’t have historical data):

If you’re starting from scratch, a good idea would be to start with a broader targeting, including as many potential good segments as possible since it is easier to cut out underperforming ZoneIDs and SubIDs, rather than adding good ones.

4. Don't combine tools simultaneously:

What we mean by this, is to avoid using multiple automated optimization tools at the same time. Although it may sound like a good idea, using Mondiad’s smart optimization rules(which we already talked about here) with TargetCPA bidding can potentially hinder the effectiveness of your ad campaigns by blocking segments that could otherwise be successful. 

5. Be patient with your results: 

This is a tough one but we’re sure you get it. Mondiad's TargetCPA algorithm is based on machine learning so, naturally, it takes time before you will begin to see results, especially in the learning stages.

6. Monitor your ad campaign performance:

I know we just said to be patient with the results, however, if your campaign fails to generate conversions, it might indicate that there’s an incompatibility between the settings. For example, a prolonged absence of conversions may be a sign of inefficient targeting.

The takeaway

In summary, Target CPA bidding is best used in scenarios where you have a clear understanding of your conversion goals, a predictable value associated with each conversion, and sufficient data to support optimization. By aligning your Target CPA with your business objectives and leveraging audience targeting and optimization techniques, you can maximize the effectiveness of your advertising campaigns.

For a more clear understanding of how Mondiad’s TargetCPA can optimize your ad campaigns, check out this case study on their blog.

 And before you go to test your skills with Mondiad’s TargetCPA bidding or just take your ads around the world, make sure you grab this generous bonus from Mondiad, before the time runs out! New Mondiad advertiser accounts can use the promo code “mylead10” to get a 10% deposit bonus on their first deposit of a minimum of 100$(up to 100$ bonus). The offer is available from 28.02 to 11.04.


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