The revolutionary invasion of the Internet has rendered most of the older marketing techniques obsolete with transforming methods like Search Engine Optimization, Social Media Networking, Pay Per Click, Online Advertising and Email Marketing. Lesser costs are involved in marketing your product through these means. CPA (Cost Per Acquisition) is also one of the forms of digital marketing that offers an incentive in the form of monetary benefits when a target client clicks on a link, fills out a survey or performs a mandatory task. If you want to create a financially viable marketing strategy, the CPA needs to be lowered and balanced with the ROI (Return On Investment). Before we dwell on the intricacies of the latter, let’s take a look at what CPA is.
Defined as Cost Per Acquisition (CPA), it is the cost a company is willing to invest in converting leads. . The following video will help you grasp this concept better:
These leads can be when target audiences respond or complete some procedures which are defined as CTAs (Call To Action). The layman’s thumb-rule to calculate CPA is – the cost of the product divided by the conversions. Minimizing the CPA will increase the ROI exponentially.
Strategies to Reduce CPA:
1. Landing Page
The landing page is the linked page that pops open when the CTA has been performed. Make sure that you create a compelling page that leads target audience to convert easily. To check out the effectiveness of the landing page, an analysis has to be performed by singularly changing the characteristic. A/B testing is the best way to analyze the page. This testing can differ for different products. Try out test A by redirecting the client to a single page irrespective of the ad that is clicked on. Test B is linking your customers to targeted and specific pages, which is solely dependent on the ad the customer clicks on. Analysis of the two test proposals will reveal which experiment is more effective. This will give you a mental idea of which has better conversion rates. SEO experts can help you build the right web page. An expert view of a landing page can be learnt from the following video:
2. Online Videos
Videos are considered to be the best marketing strategy, which was proved by Adobe who stated that 51.9% of the marketers valued online videos which were more CPA friendly. The competitive searches can be narrowed down to YouTube for reducing your CPA costs.
3. Retargeting Clients
How does your search engine pop up relevant ads in your pages when you have previously visited those products? This is done by the retargeting technique which subtly interferes in the client’s page if the client has referred to that link previously. A revolutionary marketing strategy, retargeting allows you to creep into the minds of your target audience and increase your chances of converting them into clients.
A subset of the above is when a client leaves the shopping cart abruptly. The retargeting marketing strategy will remind these customers to complete their purchase. While creating the layout of this message, the marketing company needs to be subtle about not emanating the wrong message and politely encourage the client to complete the shopping.
4. Geo Centered Marketing
Sales leads are not spread uniformly in a particular geographic region. There needs to be a better understanding of how these leads are generated and the places they emanate from. Focus should be targeted on areas that have better conversion rates. Allocate budgets that account for the geographic conversion rate as a whole which helps you reduce the CPA and increase the ROI. This does not mean you should refrain from lower conversion rate cities or localities but spend wisely on them when the company is on a stringent budget. An axiom built around this concept is called the Pareto principle which states that 80% sales come from 20% of the marketed area.
5. SEO Techniques
Search Engine Optimization is a refined tool that will help the company reach a competitive quality score monitored by Google and other relevant search engines. A well-constructed page with the inclusion of keywords and high-quality content will increase the quality score. This score determines the position of the website in a serach engine result page when a client enters a keyword into the search engine. A better quality score will, in turn, provide a better ranking of the website. Black Hat and White Hat are the two forms of practices used by SEO experts. This will reduce the cost per click and yield a higher return on investment.
For upcoming brands or novel marketers, it is necessary to regularly check the blogs, posts, and content for keywords that are not in tandem with your objectives. These negative keywords can be a limiting factor to the marketing or promotion of your product. The process of re-evaluation needs to be increased, especially if you are trying to create a first-time online presence. Evaluators are present in the market that will help you identify the negative keywords in your articles or content.
7. Review Ads
If you are a newcomer in the market and looking to create an impression, you need to review your ads regularly. The content of the ads needs to be monitored, and the ad should be in sync with the message or objective of your campaign. A distortion in the idea conveyed, and the message of your ad can explosively affect your marketing strategy. Include changes if necessary in your CTA. A stronger and imperative point can be made if you make use of action-oriented messages in your ads like “Click Now”.
8. Leaking Keywords
It is considered wise to run a search of the priority of keywords and their rank which will determine the per click conversion ratio. Drop the keywords you are paying for that do not have an acceptable conversion rate to reduce the leaking costs in your marketing plan. These keywords are just depleting your marketing resources.
9. Email Marketing
This form of digital marketing is considered as one of the most progressive forms of marketing although it was formulated a long time back. Personalization and outreach are the main factors for its success. It also has a high ROI with very low CPA cost. Emails can be designed in simple ways with good conversion rates.
Before implementing any form of marketing into your business plan, it is necessary to maintain a high ROI as compared to the CPA costs. A lucrative business will definitely implement a defined structure for marketing with tried and tested methods. Analyze other similar products introduced in the market and take inspiration from these products while creating a marketing plan for your product. The tips mentioned above will help you in making your business a viable option and reducing the cost depletion from your marketing budget. You can learn how to calculate your company’s CPA and ROI here: