CPA is referred to as Cost per Acquisition. It is a metric in Google Adwords that measures the cost you incur in order to attain a conversion. Generally, your cost per acquisition will be higher than your CPC (Cost per Click). This is because of the simple fact that not everyone who clicks on your Ad will go on and complete your desired action. Your desired action can be anything according to you business, Ex: making a purchase on your site or filling out a form to become a lead.
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Calculate Cost per Acquisition with this simple formula: Cost / Number of Conversions.
Cost per Acquisition takes into account the number of clicks on your Ad you need before someone converts. Which means a good conversion rate means low CPA.
How Quality Score Affects CPA
Keeping your quality score high can significantly lower your CPA.
Apart from improving your Quality Score, you can also follow the steps given below to optimize your CPA.
You can find days & hours of a week where CPA is high with low Conversion Rate. Stop running campaigns on those days or decrease % bid adjustment.
Increase the % bid adjustment for locations converting well and decrease it for locations not converting enough.
Opt for Target CPA bid strategy & place less than 50% Target CPA of current CPA
Pause keywords with high CPA & poor conversion rate, and raise the bids of converting keywords.
Add relevant keywords similar to high converting keywords. Also check your SQR (Search Query/Term Report) and add negative keywords.
Ad Group Level
Use Flexible Bid Strategies at Ad group level based on their past performance.
Pause Ad Groups with High CPA and poor Conversion Rate. Create a new Ad group with relevant theme and check it’s performance.
Ad Copy Level
Pause or remove Ad copies with low or zero conversion rate. Or you can edit or modify the existing Ad Copy that isn’t performing well.
Landing Page Level
Check the relevancy of content with targeted products in the campaign.