How to get lower Google Ads CPA | LA SEO Service - Los Angeles Search Engine Optimization Company

16 Nov How to get lower Google Ads CPA

Want to lower Google Ads CPA this month?

Of course you do!

In this article, we’ll uncover a few things that will help you spend less on pay per click (PPC) customer acquisition every month.

What is CPA?

Cost per acquisition, or CPA, is defined by Google as,

“The price advertisers pay for every new customer they acquire, which is calculated by dividing the total cost of conversions by the number of conversions.”

Cost per acquisition CPA is a measure of return on investment ROI of any given campaign. Google determines cost per acquisition for a company by its quality score. But there is so much more to figure out the cost for advertisers. Always work to improve your score with factors like relevancy. Basically, each ad group needs to have a set of extremely relevant keywords.

Your bid vs. your competitors’ bid

Did you know different keywords have different conversion rates? Think about the specificity of the keyword or longtail keyword you are aiming to show for: is it a general word or phrase or a specific one? Take the shoe market for example:

“Best shoes of 2018” would apply to someone more in the consideration phase of marketing than “2018 crossfit lifting shoes” who is likely searching to buy something specific, and soon.

So the question is, how much should you bid for these terms?

Picking the proper targeting option will help you spend more wisely depending on your goals.

Target CPA vs. Target ROAS

It’s important to choose the correct targeting for your campaigns to best lower your CPA.

Target cost-per-acquisition (CPA) bidding is effective in drastically increasing your traffic numbers and conversion rates at a reasonable cost, but if you really want to save, follow these instructions

CPA is a good target choice when you have a fixed cost/fixed payoutout model. This makes it great for lead generation but potentially misleading for e-commerce.

Return on Ad Spend (ROAS) is the better choice if you have revenue heavily varies between purchases. This makes ROAS great for e-commerce but makes it much less useful for lead generation.

Increase your Quality Score

Above all, to get lower Google Ads CPA you need to improve your Quality Score. Here are a few ways you can improve your quality score:

  1. Ad relevance – how related your ads are to they keywords you are targeting
  2. Click through rate – total amount of times your ad appears divided by total about of times your ad is clicked
  3. Landing page experience – is your content on your site relevant to the searcher’s query? is it mobile friendly? does it load quickly?

Ultimately, are you answering the searcher’s query with a beautiful mobile experience with a high CTR? Then you will likely be rewarded with lower cost per clicks and ultimately a lower CPA.

Target a better converting audience.

You can charge whether or not you are catering to a poorly converting region on the locations tab in Google Analytics. You might have one of the best websites in the world but no one would know if you don’t market to a well-converting audience.

Use a structure that demand single keyword add groups, then, of course, make the landing pages terrific. this is a great way 2 narrow your scope and reduce your cost per acquisition.

Set Parameters

Set parameters for your ads with the IF function in Google ads. Make sure they only show up at the most relevant time possible to avoid paying for useless clicks. The people who actually see your ad might want to act upon it. Always be strategic. On the same lines, schedule your ads to appear during high traffic time and test different bid modifiers to get you the most clicks for the least amount of money.

Industry Conscious

Always be conscious of your industry. What works terrifically for some companies may be an utter failure for your business. Paid search already cost a lot of money, so why not make the most of it and get a lower Google Ads CPA?!

 

Struggling with your cost per acquisition?

Contact us today and we will get you started on the path to search engine success (and saving money!) 

 

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