Microsoft Ads Automated Bidding: tCPA vs tROAS (2026 Benchmarks)

On this page
On Google, you can switch to tCPA with 15 conversions. On Microsoft, if you do that, the campaign dies. Microsoft's algorithm is "thirstier" for data. It is also slower to react to changes.
In this "Mega-Authority" guide, we cover:
- The Thresholds: When to switch?
- Enhanced CPC: The default king.
- Max Conversions: The budget drainer.
- Portfolio Strategies: Sharing data.
Part 1: The Thresholds (50 conversions)
Do not use Target CPA (tCPA) or Target ROAS (tROAS) until you have 50 conversions in the last 30 days at the campaign level.
- If you have 10 conversions, stick to Enhanced CPC.
- Reason: With low data, Microsoft's bid floor logic panics and stops bidding continuously.
Part 2: Portfolio Strategies
If you have 5 small campaigns (10 conversions each). Combine them into a Portfolio Bid Strategy.
- Shared Library -> Bid Strategies.
- Create "tCPA $50".
- Apply to all 5 campaigns.
- Result: The algorithm sees 50 total conversions and can optimize effectively.
Part 3: Max Conversions (Warning)
"Maximize Conversions" without a cap is dangerous. Microsoft will spend $50 for a click if it thinks it might convert. Always set a Maximum CPC limit even on automated strategies (if available). Or, use tCPA instead which inherently limits cost.
Part 4: Learning Phase
Microsoft's Learning Phase is l...o...n...g.
- Google: 7 Days.
- Microsoft: 14-21 Days.
- Rule: Do not touch the campaign for 3 weeks after switching bidding strategies. If you change a budget, it resets.
Part 5: Summary & Checklist
Your Action Plan:
- Audit conversion volume per campaign.
- Switch low-volume campaigns to eCPC (Manual).
- Switch high-volume campaigns (>50) to tCPA.
- Create Portfolio Strategies for grouped campaigns.
- Patience: Wait 3 weeks before judging performance.
Feed the machine... slowly.
Operational Execution Paths

Kiril Ivanov
Kiril Ivanov is a digital marketing specialist with experience managing local, national and international campaigns for businesses ranging from growing independent companies to major consumer brands. His background includes leading advertising automation work for Michael Kors and working on campaigns involving Canon, Dormeo, esure, DLG Group, Village Gym, Cameron House, Crerar Hotels, Cromlix Hotel, Harrison Fund and the Advertising Standards Authority. His experience spans paid search, paid social, advertising automation, SEO, conversion optimisation and wider digital strategy across hospitality, retail, financial services, professional services and other competitive sectors.
Want Us to Execute This for You?
Read the playbook, or let our senior operators audit your live account and manage your daily bidding, tracking, and campaign architecture.