How to Lower Your Cost Per Acquisition

Posted on February 4, 2010
Filed Under Affiliate Marketing Tips, Google AdWords, Landing Page Optimization, PPC Keyword Tools, Pay Per Click, Toronto SEM Consulting | Leave a Comment

How to Lower Your Cost Per Acquisition (CPA)

Cost Per Acquisition (CPA) advertising, or Cost Per Action advertising, is a method of paying for advertising that allows the advertiser to pay for each conversion such as a download, transaction, and lead instead of paying each time someone clicks on the ad. In other words, the advertiser only pays when the user completes a transaction. When differentiating CPA vs. CPC (Cost Per Click), with CPC, the advertiser pays each time someone clicks on the ad.

The best way to lower your CPA is to maximize your keywords so that you are using keywords that people use when searching for your product and service.  You must be able to turn your keywords into a sale. This involves constantly looking for quality keywords so you gain a competitive edge and that the researched keywords result in a profit. One important step you should take is setting a maximum cost-per-acquisition (CPA). This is the bid you are willing to pay for a conversion such as a transaction. For instance, if your maximum CPA bid is $5.00, you will not pay more than that price. You may also end up paying less depending on what others are bidding. You have the option to increase or decrease your maximum bid, depending on your marketing strategy. Google’s recommended maximum cost-per-acquisition (CPA) is the ad group bid that they suggest to help an advertiser keep costs steady.

Other than Google’s free conversion optimizing service, there are also cost per action paid service companies that specialize in finding the right keywords and setting the price. There are keyword research services available that provide advertisers with the ability to continually research keywords and create a relevant and effective list of keywords that will help them increase site traffic and lower their cost per acquisition. It is an effective method of controlling advertising spending and reducing advertising waste. People can also manually set keywords and bids themselves. Cost Per Acquisition Optimizing is an important tool if you are looking to optimize the number of conversions to maximize your advertising dollars.

Quality Score is another way to lower your CPA. Quality score is a grade search engines apply to your advertising campaigns. The higher a search engine grades your campaign, the less you will be charged. As well, you ads will become better established in the ‘Sponsored Links’ column. Quality score is affected by ad text relevancy, keyword relevancy to its particular ad group, landing page quality, and the click through rate. By producing search engine friendly ad campaigns, you will reduce your advertising costs by permitting the search engine to generate reduced minimum bids and first page bid for your advertising account. With better CPA management, businesses can drastically improve conversions while lowering their CPA.

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Landing Page Optimization Google Adwords

Posted on October 28, 2009
Filed Under Affiliate Marketing Tips, Google AdWords, Google Quality Score, Landing Page Optimization, Pay Per Click, Toronto SEM Consulting | Leave a Comment

Understanding Landing Page Optimization for Google AdWords

Your quality score in the AdWords system is the way Google indicates how effectively the keywords and content work together in your ads and landing pages. A wise choice of keywords connecting your ad to the relevant content of a quick-loading landing page will be rewarded with a lower cost per click and better ad position, not to forget more click-throughs. Google wants to help you increase your quality score since doing so results in increased overall trust searchers will have in Google AdWords.

Google is in the business of uniting its search clients with the exact item, service or information they are looking for with as little effort as possible. If your landing page is doing its job, not only will searchers see that you are a good match; they will also find it effortless and compelling to commit to a purchase and refer others to your site.

It is no easy task to create the perfect landing page that will draw in droves of traffic and flood your servers with orders. Testing various versions of your landing page and noting the response of your visitors is critical to developing a successful campaign. The number of issues a landing page needs to resolve; loads in seconds, is absolutely relevant to the searcher, establishes immediate trust, and presents a clear and compelling call to action, will clearly take more than one try. Multiple version of your landing page, varying a single feature, such as the call to action, will lead you to a version that visitors will prefer.

In order to take advantage of the many different ways people search the web, e-commerce sites should diversify their marketing efforts. An effective e-commerce marketing strategy would include individual product landing pages for long-tail, and review and comparison pages allowing dispersal across a wider spectrum of search criteria to address the bulk of search queries.

Learning the strategies to effective ad and landing page optimization yields a double reward. You have chosen the most relevant keyword phrases to attract the right traffic. You have done the testing to come up with a landing page that is relevant to your AdWords ad. On the one hand, fine-tuning your landing pages will net you higher numbers of quality visitors buying your products. To add to that, Google will reward you with a lower cost per click for your AdWords campaign, since the success of the Google AdWords system is dependent on your success.

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