What Is Your CPA?

What is your cost per acquisition (CPA)?

There are plenty of metrics to look at in online marketing, the most important is cost per acquisition (CPA). Whether your aim is to make a sale, encourage someone to sign up to an email list or to join a affiliate program – you need to know how much each action costs you.

In this tough economy, this is even more relevant, and making sure that your CPA is as low as possible is vital in ensuring that you make the most of every penny of marketing spend. In order to help you do this, we have devised 3 very simple measures that you can take.

1, Analyse conversion rates at keyword level – If you look at your SEO or Google Adwords campaigns, you will usually find that performance varies greatly from keyword to keyword. You will need several months worth of data, but once you have this, you can see which terms convert the most and allocate SEO and Adwords budget accordingly.

2, Split test the page visitors are sent to – The rate at which your page converts visitors will affect your CPA. The higher the conversion rate, the less each new customer will cost to acquire. Make sure all pages include clear and compelling copy, a strong call to action and are tested in every different type of browser. In these days of mobile and tablet surfing, it is also worth checking that your pages are easily accessible on a range of devices.

3, Look for new markets – It’s no secret that the cost of using Google Adwords to advertise in UK has risen in recent years. What many people don’t know is that the cost is a lot lower if you target other countries. In many verticals, emerging countries such as Australia offer you the opportunity to convert customers relatively cheaply as there is much less competition than here in the UK.