Final answer:
To use Target CPA bidding, an advertiser needs to have conversion tracking in place with at least 15 conversions in the past 30 days and must decide on a suitable CPA that meets their business goals.
Step-by-step explanation:
In order to use Target Cost Per Acquisition (CPA) bidding, an advertiser must have a clear understanding of how much they are willing to pay for a conversion. The Target CPA bidding strategy uses historical information about your campaign and evaluates the conversion rate to set the optimal bid for each ad auction.
An important prerequisite is that the advertiser must have conversion tracking set up, and ideally, they should have at least 15 conversions in the past 30 days to enable the algorithm to make informed decisions. Without sufficient conversion data, the system may not work effectively in optimizing conversions.
Conversion tracking is vital as it informs the Target CPA algorithm about which clicks are turning into customers. An advertiser must also decide on an optimal CPA that aligns with their business goals and profitability. Monitoring and adjusting bids based on performance is also a critical part of managing a Target CPA campaign.