Pay-per-click advertising campaigns provide an effective way to gain more traffic. However, the number of clicks you get means nothing if you cannot get this traffic to convert.
The cost per customer acquisition (CPA) is at the top of the list of essential metrics to track on your PPC ad campaign. This refers to the amount that you spend to gain one new customer.
If you want to get the best results from your PPC campaign, use the following suggestions to minimize the cost and increase your return.
- Do Not Broaden Your Ad Targeting
When selecting regions for your ad campaign, you may be tempted to target a wide variety of locations. However, when you broaden your ad targeting, you are going to get clicks from people that are not your prime audience. These people will be less likely to convert.
Instead of targeting a broad range of locations, you should limit your targeting to the locations that provide the best conversions. From the Google dashboard, you can view conversion rates for each of the locations that you currently target. For example, when targeting the United States, you can view the conversion rates for each state.
Along with states, you can review the conversion rates for local areas. You can determine which cities have the best conversion rates.
After reviewing the conversion rates of all the locations that you target, consider turning off the ads in those areas. If you do not want to completely ignore these regions, you should at least reduce the total bid.
- Start Using Smart Bidding for Your Ads
One of the most useful features of Google Ads is smart bidding. With this feature, Google uses algorithms to help optimize your advertisements for specific targets. For example, you can optimize your ads to lower your CPA, improve conversion rates, or grow your return on ad spending (ROAS).
While smart bidding can be incredibly useful, it is less effective when Google has less information to use for the automated bidding strategy. Typically, your ads should have already received at least 25 conversions in the past 25 days for smart bidding to be effective in lowering your CPA or increasing your conversions.
With smart bidding, you can also tailor your bids to specific bidding signals. For example, you can increase or decrease bids based on the type of browser, device, or location. You will also receive status updates and reports that let you know whether smart bidding is working for you.
- Improve the Quality Scores of Your Ads
When you create advertisements for Google Ads, your ads receive a quality score. This score determines the relevance of your ad for specific keywords. When your ad has a lower quality score, it is less likely to receive clicks. However, there is also evidence that suggests that the quality score is directly connected to the CPA.
By improving your quality score, you can lower the total cost per customer acquisition. The best way to improve this score is to review your ads. You may get a lower score if the content on the landing page or the content in your ad is not relevant to the keywords that you select.
You may also want to restructure your ad campaigns into smaller ad groups. This allows you to get more specific with the keywords that you select. You can then create ad copy that is more relevant to these specific keywords, instead of using a general text advertisement to target a broad audience.
- Utilize the IF Option to Tailor Your Ads
Google includes a useful feature called the IF function. This feature allows you to set specific IF conditions. When these conditions are met, you can include tailored content in your text advertisements. When the conditions are not met, the tailored content is not included in the ad.
With the IF condition, you can tailor your advertisements based on the audience of the device. For example, you can create an IF condition for users on mobile devices. If the user is on a mobile device, the ad that they see will vary from the ad that desktop users see.
- Improve the Content on Your Landing Page
Besides editing your Google Ads campaign, you can lower your cost per customer acquisition by improving the content on your landing page. If you have lower conversion rates, you will have a higher CPA.
Several of the tips discussed can help lower your conversion rates, such as using smart bidding or reviewing the locations that you target. However, the quality of the landing page is crucial to your success.
Your landing page should offer a clear, concise message. Users should know immediately what products or services you are offering. If they need to scroll down on your page, you will likely lose a large portion of your visitors before they even finish looking at your content.
You may also want to include a call to action above the fold, immediately after you introduce your unique selling proposition.
The last tip for limiting the CPA of your advertising campaign is to not get complacent. It is easy to create your ad campaign and wait for people to click on your ads. However, it is important to continually analyze the results of your ad campaign. Trends can change from one day to the next.
You should continue to test the campaign and find ways to lower your CPA. Start from the beginning and review the locations that you target. If you are targeting too many low-converting locations, you are wasting your marketing funds.
Remember to try using smart bidding to allow Google to optimize the advertisements. You should also pay attention to your quality scores. Make sure that your advertisements are relevant and use the IF feature to tailor your ads for specific keywords.
These are just a few of the top ways to lower your total cost per customer acquisition. You may also need to lower your keyword bids, research targeted keywords, and use A/B testing to test multiple variations of an advertisement.