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Relation between Maximum Budget , CPA & their effect on the Number of Leads.

By : Fabien Pinckaers | CEO & Founder at Odoo

Why you should never set both a Max Budget and a target CPA in your Adwords & Meta campaigns, explained in one graph.
In the example below, from Google Adwords:
- with a max budget of $50, and a target CPA of $4, you get 12.5 leads
- but with a target CPA of $2.5 without max budget, you get 20 leads for same cost of $50

Instead of setting a maximum budget, increase or decrease your target CPA to reach the amount you want to spend. I believe it's one of the most costly mistake marketeers do.

To say it in other words: the reduction of target CPA usually decreases the number of leads (you win less bids) - except when you are Capped by a Max Budget: in this case, it can increase the number of leads for the same cost.