Cost Per Acquisition (CPA) is a simple marketing approach in concept. It refers to the amount of marketing and advertising spend required to convert consumers or acquire leads. Like all forms of marketing, it is a good idea to optimize Cost Per Acquisition to ensure that it fits within the company's budget. After all, spending too much money to convert searchers into buyers isn't an efficient use of marketing dollars. One of the options to optimize a marketing budget is to work on lowering Cost Per Acquisition. Here are five ways any business can lower CPA.
1 - Optimize Landing Pages
Landing pages are often the first interaction consumers have with a brand after clicking on an ad. This holds true for Pay Per Call customers as well who might research a brand a little before dialing the number listed on the landing page. In order to optimize landing pages, consider running a simple A/B Test to see what content and formats drive the most conversions.
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2 - Temporarily Stop Targeting Low-Performing Locations
All digital marketing relies upon geo-locations to target consumers. For example, a locksmith business might use geo-fencing in a Pay Per Call campaign to ensure ads only appear in certain geographical areas which are reasonable to travel to given the emergency/24-hour service locksmiths often provide. When businesses notice certain locations are generating little or no sales, Cost Per Acquisition can be lowered by temporarily putting a stop to targeting campaigns in those under-performing areas.
3 - Stay On Top of Negative Keywords in Search Terms Reports
Cost Per Acquisition can also be lowered by eliminating negative keywords from search term reports. Eliminating irrelevant or unqualified searches in a search term report can lower CPA by avoiding spending money on keywords that are not in line with the brand's marketing objectives. Omitting them in the future is a simple way to lower Cost Per Acquisition.
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4 - Temporarily Halt the Use of Non-Converting Keywords
On a similar note, not all of the keywords chosen for a marketing campaign are going to perform at the same level. Take the time to review the entire list of chosen keywords. Although these keywords were undoubtedly chosen originally after research, that doesn't mean each keyword will perform up to expectations when it comes to generating conversions. Cost Per Acquisition can be lowered by removing keywords that simply aren't converting for the marketing campaign. Additionally, businesses should evaluate the profitability of keywords. Even those keywords that are working may not be highly profitable.
5 - Update Ad Copy
One final means of lowering Cost Per Acquisition relates to ad copy. Marketing and advertising campaigns are ever evolving along with the message and objectives of the brand. Is the ad copy used in these campaigns evolving as well? Does current ad copy align with marketing objectives and messaging? This doesn't mean that large, wholesale changes to ad copy will be necessary. In many cases, it is best to start by introducing small changes to a Call to Action or other portions of the copy to ensure it is targeting qualified leads effectively.
Lowering Cost Per Acquisition can help save money and streamline the efficiency of any marketing campaign. The steps outlined above are simple measures that can be taken to help lower the cost of acquiring converting customers.