CPA – How to lower your CPABack to Glossary
Also called Cost per Action or Cost Per Acquisition, CPA is a pricing model for online advertising whereby advertisers pay for a specified action like a click, impression, newsletter sign-up, registration, double sale or opt-in, etc. Many advertisers, especially direct response ones, prefer CPA when buying online advertising because they only pay when their desired action has occurred.
What determines CPA on adwords?
The largest determinant of your CPA on Google Adwords is your quality score. This all important metric could mean the difference between a profitable campaign and a total failure. Your quality score is determined by the quality of your ads, landing pages and keywords. This effectively means that the higher your Quality Score the less Google will charge you in CPA. In fact, your cost per action should drop by 16% every time your quality score goes up by a point after you hit a Quality Score of 5. Think about it like this – if you have a very quality website, Google doesn’t mind you showing up in search, and won’t charge you as much to be there as it would to someone with a poor quality website.
Consequently, you should put most of your effort into improving your Quality Score if you want to lower your CPA on adwords.
How to increase quality score on your campaigns? Click here.
Learn how to optimize your landing page for conversions here.
How to lower CPA
- Use better keywords: You should target relevant keywords to target your ideal audience.
- Place relevant ads: Make a point of making the ads relevant to what you’re selling.
- User friendly landing pages: This should reduce the bounce rate on your website and consequently the CPA.