For business owners and marketers alike, the Cost Per Acquisition (CPA) metric is a crucial indicator of how your campaign is performing. By definition, CPA is the amount it is costing you to generate a conversion. Once you have this information, the efficacy of a strategy can be analysed and, if needed, rethought.
This leads us to the question on every marketer’s lips… ‘how do you reduce the cost per acquisition?’
Optimising Campaign & Website
Typically, CPA is high when those seeing the ad are not interested in the product or service that is offered. In order to keep CPA down, it’s worth considering the ways in which settings can be optimised from the onset of a campaign.
A well-planned campaign is fundamental to lowering CPA and maximising ROI. Landing page optimisation, personalisation and a clearly identifiable target audience are among the many elements that should be considered.
Running Remarketing Campaigns
Additionally, conversion rates can be increased by running remarketing or retargeting campaigns. Focusing efforts on individuals who have already shown interest, but haven’t converted yet can help to lower the CPA of a campaign.
Remarketing campaigns can prove particularly effective at targeting users that have abandoned their shopping carts before check-out.
Location Specific Targeting
As we touched upon earlier, CPA is increased when ads are being seen by the wrong people. Utilising location-specific ads is an efficient method of targeting areas that have generated a high volume of sales in the past. In doing so, conversion rates will increase and CPA will fall.