Digital advertising is all about acquiring conversions and leads. There are so many metrics used by marketing professionals to track the process of attaining them. However, on the other side of the coin, you need to also consider your budget. You may have an ample budget, but if your campaigns are not fully optimized, then there’s a huge pool of potential customers you’re not getting.
The metric that bridges these two is the Cost Per Acquisition.
Cost Per Acquisition: What is it?
Google defines Average Cost Per Acquisition as the average amount that you spent for a conversion. The higher it is, the more resources are needed to make a conversion. Your goal now should be to lower them.
Cost = Cost (budget spent for things like keyword bids) / Acquisition (number of converted leads)
There are two main ways to go about this: first, lower overall cost. However, you can’t just subsequently lower your budget because it will decrease your pool of leads, which will eventually lead to fewer conversions. We’ll dive into detail below on how not to do this.
Second, increase your acquisitions, that is, your conversions. Look at it this way, with highly-effective strategies, you can make the most out of your budget, without the need to expend more resources.
Here are four fool-proof ways you can lower your CPA:
Align messaging of ads and website
Maximize remarketing and retargeting opportunities
Think about all the clicks you’ve attained but didn’t lead to a sign-up. Sure, some of them might have realized that your company isn’t exactly what they were looking for. However, a huge part of these leads were actually interested but weren’t convinced enough that they forgot all about you. This is where increasing acquisitions come in.
You nudge previously interested leads a bit which increases conversions without too much added effort.
Regularly check non-converting keywords and divert resources to those that do
This is how you lower your costs: avoid any non-converting elements. They’re a money and energy sucker. That’s why you need to keep a close eye on which of your keywords are effective so you can dedicate more time and resources to them. This eventually increases your conversions.
Keep an eye out for other things as well. This doesn’t just apply to keywords. The same process should be made for your campaigns and ads. For example, maybe you’re running ads on locations you thought needed your service. However, upon checking, you realize that there are only just a few who subscribed. Or maybe you do get clicks but these are poor quality leads, wasting your budget when it could have been otherwise spent on other strategies.
You can offset these losses by maximizing other locations, other leads, etc. The more optimized your campaigns are, the surer you can be that they are generating you leads and revenue.
Focus on pursuing high-quality clicks
In the same vein as the discussion above, you need to make sure that the clicks you get are high-quality. That way, your funnel is not super narrow at the bottom. What’s the use of huge traffic when you can’t earn back the money you spent through conversions?
To up your ad quality score, check out our handy guide here.