Google Ads: When to Switch from tCPA to tROAS

Google Ads offers advertisers an array of bidding strategies, but knowing when to shift between them is crucial. Two popular methods, Target Cost Per Action (tCPA) and Target Return on Ad Spend (tROAS), serve different purposes, which means the timing of a switch can greatly impact your campaigns.

The tCPA vs. tROAS Dilemma

tCPA bidding focuses on acquiring conversions at a desired cost. This makes it an excellent choice when goals are volume-based and an advertiser has a clear target cost in mind. On the other hand, tROAS bidding aims to maximize revenue generated for your business while aiming for a specific return on your ad spend.

A common scenario for considering a tCPA to tROAS switch is when introducing a new product - especially one with a significantly higher price point. Here's why: tCPA might continue optimizing for conversions of the older, less expensive product, hindering the success of your new launch.

Gradual Transition vs. Direct Cutover

The concern about 'tanking performance' during the switch is well-founded. A sudden change in bidding strategy can disrupt Google's algorithm and lead to volatility in results. So, how do you make the leap while minimizing risk? Here are the two main approaches:

• Option 1: Gradual Introduction
  This involves launching new tROAS campaigns focused explicitly on the new product. Gradually increase the budget of these campaigns while slowly scaling down existing tCPA campaigns. Eventually, you can migrate the older product into these tROAS campaigns as well. This approach prioritizes stability.
• Option 2: Direct Cutover
  This is a riskier move where you directly switch your existing campaigns from tCPA to tROAS. To mitigate risk, closely monitor campaign performance after the switch, being ready to adjust your target ROAS if needed. This method is faster but might be accompanied by greater performance fluctuations.

Factors to Consider

The ideal approach depends on several factors:

• Conversion Volume: If you have a high daily conversion volume, a direct cutover might be less disruptive, as the algorithm will have enough data to quickly adjust.
• Risk Tolerance: If you're comfortable with some potential short-term performance swings, the direct cutover might be suitable.
• Time Constraints: If you're under pressure to launch the new product quickly, the direct approach could be necessary.

Additional Tips

• Start with a Conservative Target ROAS: Begin with a higher target ROAS when you first switch, then gradually lower it over time as the campaign stabilizes.
• Monitor Closely: Pay close attention to metrics like spend, conversions, and actual ROAS during the transition period.