When setting up your Performance campaigns in Yango Ads Space, selecting the right optimization strategy — either Cost Per Acquisition (CPA) or Return on Ad Spend (ROAS) — is crucial to achieving your business goals.
Selecting and adjusting your targets
- Start with benchmarks:
- Review your historical CPA or ROAS performance data from other paid marketing channels.
- Segment by user type (if using User Segments):
- Apply benchmark CPA or ROAS values specifically to your Buyer segments.
- Adapt targets for challenging segments (if using User Segments):
- For Non-buyers and New users, adjust your CPA or ROAS targets accordingly, considering their higher acquisition costs. Typically, reduce your ROAS target or increase your CPA target for these segments:
- Non-buyers: adjust CPA upward or ROAS downward by 30-60%
- New users: adjust CPA upward or ROAS downward by 50-80%
How billing works
With both ROAS and CPA strategies, billing is calculated per conversion:
- If you use a ROAS strategy and receive a $100 purchase with a ROAS of 5, you'll be billed: $100 + 5 = $20.
- If you use a CPA strategy and receive a $100 purchase with a CPA of $20, you'll be billed: $20.
Reach out to your Account Manager for personalized guidance in selecting and optimizing your CPA or ROAS targets.