PPC Playbook is hosted by PPC experts, Shane Ryans and Maria Perilli. Episode 24 reviews Cost-Per-Acquisition (CPA), aka “Cost-per-converted customer”, a key metric in providing a high-level view of your overall campaign performance. The Professionals thoroughly review four interconnected ways to help adequately manage CPA. Note: If you’re having a CPA problem, take the time to dig deep into the data; the issue may not always be on the surface!
How to manage your pay-per-click CPA effectively:
Lower your cost-per-click (CPC): An ad at the top of the SERPs = a higher CPC. Lower your bid to lower your ad’s position a bit and in turn gain control of your CPA. It quickly turns into a math game to master since high converting keywords will cost you more.
Increase quality score: Your webpage’s bounce rate, average time spent on site and ad CTR are three factors that play together affecting your quality score. Examine your ad copy and landing page to be sure all match the appropriate keywords. As you improve your quality score, you will lower your CPC as well.
Increase click-through-rate (CTR): An ad that includes keywords from the appropriate ad group is the start to CTR improvement. Listen to Episode 7 for a review on creating keyword-rich text ads, the benefits/pitfalls of DKI (dynamic keyword insertion) and overall effective ad structure. Utilize negative keywords to filter out unwanted traffic and “dead clicks,” and be sure match types are segmented. For a detailed review on segmenting match types, listen to Episode 1. The use of ad extensions is also a proven way to increase CTR. Check out Episode 21 for an in-depth ad extension review and learn which ones best suit your business.
Bid management: Don’t overpay for your clicks. Examine your CPCs, how much you’re bidding on keywords and how effectively those clicks are converting. Also, remarketing audiences play a part here.
To learn more about Managing Cost Per Acquisition visit the PPC Professionals AdWords Best Practices Tutorial. We’re here to help, if you have any questions about managing your CPA, let us know, we are offering a Free PPC Audit for a limited time.
PPC Playbook provides an interactive and friendly atmosphere for pay-per-click managers to get their industry news fix and questions answered. Subscribers can Tweet their PPC-related questions to @ppcplaybook or comment below. New episodes air Thursdays at 3 p.m. EST on WebmasterRadio.FM.