MaxConversions Bidding Strategy

How MaxConversions Works

Setting Up MaxConversions

Budget Requirements

Best Practices for Product Campaigns

Best Practices for Search Feed Campaigns

Common Issues & Troubleshooting

FAQ

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MaxConversions is a bidding strategy within CPA Tune that focuses on maximising the total number of conversions while fully utilising your daily budget.

Rather than optimising strictly toward a cost target, MaxConversions prioritises conversion volume. The algorithm spends the allocated budget to generate as many conversions as possible.

The target CPA (tCPA) serves as a directional benchmark, not a hard cap. The algorithm may exceed the tCPA on individual conversions. The overspend is limited to 2x tCPA for product promotion campaigns and 1.5x tCPA for search feed campaigns. Please keep these limits in mind when setting your tCPA.

MaxConversions strategy is available for both Product Campaigns and Search Feed Campaigns.

 

How MaxConversions Works

MaxConversions operates as a CPC-bidding model optimised for conversion volume. You continue to pay per click, but the algorithm decides which clicks to buy based on predicted conversion probability, with the goal of maximising total conversions within the daily budget.

The campaign budget is the primary control lever. The tCPA guides the algorithm's bidding direction and helps reduce the exploration phase, but the budget determines the scale of delivery.

Exploration Phase

When MaxConversions is enabled for the first time, the algorithm enters an exploration phase:

• The system places higher-than-average CPC bids to acquire traffic quickly and collect conversion data.
• Campaign spend and actual CPA may fluctuate during this period, which is a normal and expected part of the algorithm's learning process.
• The algorithm learns which traffic sources and user segments are most likely to convert.

The exploration phase ends once the campaign generates its first conversion or spends 3× the target CPA (tCPA), whichever comes first. At that point, the algorithm transitions into the optimization phase, where bidding becomes more stable, and CPC levels typically begin to normalize.

The overall learning period typically lasts 7-14 days, or until the campaign accumulates 10-30 conversions. The model's accuracy improves as more conversion data becomes available.

Optimisation Phase

Once sufficient conversion data is collected, the model transitions into the optimisation phase. Bids stabilise and the algorithm continuously refines its targeting to maximise conversions per budget spent.

 

Setting Up MaxConversions

To enable MaxConversions in MGID Ads, follow these steps:

1. During campaign setup, open Budget and bidding. Under the Bidding strategy, select MaxConversions to activate it.

2. Add a realistic target CPA. Remember, the algorithm is allowed to go above this value.

3. Allocate a daily budget with a minimum threshold for your campaign type (see Budget Requirements below).

4. Configure conversion tracking where the primary goal is required; additional funnel events are recommended.

5. Keep targeting broadly enough to allow sufficient traffic volume.

6. Limit active ad creatives to 10 or fewer.

Switching Bidding Strategy

You can switch between bidding strategies at any time from the Budget & Bidding section of your campaign settings. When changing strategies, be sure to review and update all required settings to ensure the selected strategy performs as intended.

 

Budget Requirements

Product Campaigns

Daily budget for product campaigns must be at least 5x tCPA; the recommended range is 5–7x tCPA. For example, if your target CPA is $10, set a daily budget of at least $50–70.

MaxConversions is designed to fully utilise the daily budget. A higher budget directly increases the potential for conversion volume.

Search Feed Campaigns

For search feed campaigns, set the initial daily limit to approximately 200x tCPA. It will allow the algorithm to observe the full daily traffic cycle without interruption. The minimum daily limit for search feed campaigns is 30x tCPA.

For MaxConversions, the daily budget is the primary lever for controlling scale and performance:

 

Best Practices for Product Campaigns

To get the most out of MaxConversions for product campaigns, follow these key recommendations.

• Set a Realistic Target CPA

Even though tCPA is not the primary lever, it shapes bidding behavior and defines the overspend boundary. Set a tCPA that reflects your actual conversion economics. If the algorithm can go up to 2x tCPA, ensure the figure remains within an acceptable range for your campaign.

• Use Budget to Control Scale

The budget is your main dial. To increase conversion volume, raise the daily budget. To reduce spend, lower it. Increase incrementally rather than making large jumps, and allow the algorithm time to adapt after each change.

• Limit Active Creatives

Keep active ad creatives to 10 or fewer. The algorithm distributes traffic across creatives and performs best with a focused set. Pause underperforming ads and replace them with new ones rather than accumulating a large pool.

• Refresh Creatives

Once the campaign has stabilised, periodically refresh your creative set. New creatives allow the algorithm to explore new traffic pockets and unlock additional conversion volume. Use the CTR Guard tool to boost performance and prevent creative burnout.

• Add Conversion Tracking Goals

The primary conversion goal is required. Tracking intermediate funnel steps (e.g., page views, add-to-cart, lead form submissions) provides the algorithm with richer signals and helps identify drop-off points for manual optimisation.

• Enable Engagement Tracking

Use MGID Pixel to track Engagement metrics. Not only does this data provide insights about traffic quality, user behavior, and website engagement, it is also used as a strong signal for CPA Tune.

• Configure Source Optimisation

Allow a broad set of traffic sources at launch. If switching from CPC, unblock sources that may have been restricted. Adjust sources over time based on performance data.

• Avoid Narrow Targeting

Broad targeting settings provide the algorithm with sufficient traffic volume to explore effectively. Overly narrow targeting constrains the model and limits its ability to maximise conversions.

• Allow a Full Learning Period

Give the campaign 7–14 days before evaluating performance or making significant changes. Avoid adjusting budget, targeting, or creatives during this window; stability is critical for the algorithm to learn efficiently.

 

Best Practices for Search Feed Campaigns

To get the most out of MaxConversions for search feed campaigns, follow these key recommendations.

• Buyout Is Handled Automatically

For Search Feed campaigns, the algorithm automatically manages the buyout process. No manual intervention is required.

• Monitor and Optimise Ad Creatives

Regularly review ad creative performance. Remove low-performing creatives and add new ones. Keep the active creative count at 10 or fewer.

• Set tCPA Strategically

Set your target CPA 15–20% lower than your actual average CPA (payout). This gives the algorithm a conservative benchmark and helps maintain margin.

• Manage Budget During Launch

During the first few days, allow the campaign to run at break-even. Set the daily limit to approximately 200x tCPA and ensure there are no delivery interruptions. Budget exhaustion disrupts the learning cycle.

• Ongoing Adjustments

Check campaign performance 1–2 times per day:

If the margin is high, increase the tCPA or the budget to capture more volume.

If the margin is low, decrease the tCPA or budget to tighten cost controls.

• Understand MaxConversions CPA Accuracy

MaxConversions is optimised for volume, not for hitting an exact CPA. The actual average CPA may exceed your tCPA, even though the algorithm tries to buy cheaper conversions when possible; individual conversions may vary. If strict CPA control is your priority, consider using Target CPA instead.

 

Common Issues & Troubleshooting

 

FAQ

1. Can I manually adjust CPC bids?

No. When MaxConversions is active, manual CPC controls are disabled. The algorithm requires full autonomy over bid adjustments. Use the daily budget and tCPA to influence performance.

2. Can I change my budget or tCPA after launch?

Yes. However, avoid making significant changes during the learning phase (first 7–14 days or before reaching 10–30 conversions). Adjust gradually and monitor performance after each change.

3. What is the difference between MaxConversions and Target CPA?

Target CPA uses tCPA as the primary control lever and optimises toward a specific cost target. MaxConversions uses the daily budget as the primary lever and optimises for conversion volume, using tCPA as a directional reference. Choose MaxConversions when scale matters more than hitting a precise CPA figure.

4. How much can the actual CPA exceed my tCPA?

The algorithm limits average overspend per conversion to 2x tCPA. For example, if you set a tCPA of $5, the average cost per conversion should not exceed $10. Individual conversions may vary, but the average is bounded by this cap.

5. Will I lose control of my campaign?

No. You retain full control over tCPA, budget, targeting, creatives, and traffic sources. The only automated component is CPC bid adjustment.

6. Can I switch between bidding strategies?

Yes, at any time from the Budget and Bidding section. Switching strategies requires updating the relevant settings for the new option.