In programmatic advertising, one of the most common goals is lowering Cost Per Acquisition (CPA) without sacrificing reach or quality. Google’s Display & Video 360 (DV360) offers robust tools to achieve this, but success depends on knowing how to set up and optimize campaigns effectively.

In this guide, we’ll cover proven strategies and optimization tips to help you reduce CPA and improve overall performance in DV360.

1. Start with the Right Audience Targeting

Targeting too broadly often leads to wasted impressions and higher CPAs. Instead:

• Use first-party data (CRM lists, site visitors, converters).

• Leverage custom affinity and intent audiences to reach high-intent users.

• Exclude irrelevant audiences (e.g., converters, non-relevant demographics).

Tip: Combine remarketing lists with prospecting campaigns for a balanced funnel approach.

2. Choose High-Performing Inventory Sources

Not all impressions are equal. To avoid wasted spend:

• Prioritize premium inventory and Google’s Authorized Sellers (ads.txt).

• Use Private Marketplace (PMP) deals for higher-quality placements.

• Continuously monitor placement reports to exclude low-performing websites/apps.

Tip: Set up automated rules to block inventory with high CPA or low engagement.

3. Optimize Bidding Strategies

DV360 offers automated bidding strategies that can align with your goals:

• Start with Maximize Conversions to gather learnings.

• Switch to Target CPA (tCPA) once you have enough data (50+ conversions in 30 days).

• Test custom bidding scripts for campaigns with unique KPIs.

Tip: Don’t change bidding strategies too frequently — allow time for the algorithm to learn.

4. Use Frequency Capping

High frequency often drives up CPA without adding conversions.

• Set frequency caps at campaign and insertion order levels.

• Monitor reach and frequency metrics to ensure ads aren’t overexposed.

Tip: For awareness + conversion campaigns, separate them into different insertion orders with different caps.

5. Leverage Creative Optimization

Creative performance has a direct impact on CPA.

• Test multiple ad formats (display, video, native) to see what converts best.

• Use Dynamic Creative Optimization (DCO) to personalize ads in real time.

• Refresh creatives regularly to avoid ad fatigue.

Tip: A/B test CTA variations — sometimes a simple copy change can cut CPA significantly.

6. Analyze and Refine with Reporting

DV360’s advanced reporting helps identify cost drivers:

• Review Path to Conversion reports to see which touchpoints matter.

• Use Floodlight activities to track micro- and macro-conversions.

• Apply insights to pause underperforming line items or audiences.

Tip: Set up automated dashboards for weekly CPA tracking and quick optimizations.

7. Run Incremental Tests

Don’t rely on one setup forever. Test systematically:

• Experiment with different audience mixes.

• Compare open auction vs. PMP deals.

• Test creative formats across display, video, and YouTube.

Tip: Make one major change at a time so you can clearly measure impact.

Final Thoughts

Reducing CPA in DV360 isn’t about one silver bullet — it’s about layering smart targeting, clean inventory, optimized bidding, and continuous testing. By applying these strategies, you’ll not only lower acquisition costs but also build a more sustainable and scalable programmatic strategy.