The average Cost Per Acquisition (CPA) is the cost of each conversion divided by the total number of conversions. To work it out, divide your total expenditure (all ad spend) by the total number of conversions.
Essentially, the average cost of acquiring new clients is what a CPA is. As a result, managing Google Ads has become one of the most important KPI’s for CPA firms.
Keywords
When it comes to keywords, there are a variety of things you can do to reduce your CPA. Stop any underperforming keywords right away.
Look for CPAs that are significantly (two times) more expensive than your usual in your keywords. When you’ve found them, put a halt on them. Note: If the low performers aren’t removed entirely, you may only pause them so that you may keep the data and react if necessary in the future. This is about making sure your marketing budget isn’t wasted by keywords that won’t provide you with the traffic and outcomes you desire.
Targeting
You won’t be able to improve your conversion rate to the degree required if your advertisements aren’t reaching the appropriate people. There are no conversions without a high CPA. Now, how do you make sure that the people who may be interested in your product (i.e., potential customers) see your advertising? Targeting is the solution.
Before you make any targeting adjustments, it’s critical to understand what the data is suggesting. I want you to remember that the data is available and that you must learn how to utilize it.
Quality Score
You must consider the ad relevance. This includes both the audience you are targeting and how relevant your advertising creative and keywords are. When your advertisements are more relevant, you’ll generally see improved click-through rates and conversions.
The second component of Quality Score is Quality. Quality relates to the ad creative and text as well as the webpages or landing pages that visitors will arrive on after clicking through from your advertising campaigns.
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