How can you reduce your cost per acquisition in online advertising?

The most straightforward way to track conversions is via Google Tag Manager. However, the biggest mistake advertisers often make is not tracking conversions accurately. Especially post-iOS14 and the cookie depreciation the pixel-based tracking isn't as effective. To put in perspective there are two types of tracking: 1. Client side: The traditional Meta pixel or Google conversion tags. It's based on the javascript code. 2. Server side: This method is more dependable and doesn't get blocked as often. - For Meta ads, use "Conversion API". - For Google ads, use "enhanced conversion tracking". Advertisers often see about 20-25% better results with these. Hope this helps! Follow me for more tips.

Some ways to reduce cost per acquisition on advertising are : - Target low cpc but intent driven keywords - Introduce first time customer offers to trigger the action of purchase - Introduce some creative hooks like "spin the wheel" on your website & even talk about that in your ad - Improve your quality score on Google Ads - A/B test with different creatives, audiences and copies on Meta Ads Hope these help:)

This is just my instant feel and suggest few points as Clear Conversion Goals, Precise Analytics, Conversion Funnels, UTM Parameters, Regularly Data Review, Report Generation

The simplest way to monitor conversions is through Google Tag Manager. Nevertheless, a common mistake advertisers make is imprecise conversion tracking, especially in the wake of iOS14 and the decline of cookie-based tracking, which has made pixel-based tracking less effective. To provide some context, there are two tracking approaches: Client-side: This involves traditional Meta pixels or Google conversion tags, relying on JavaScript code. Server-side: A more reliable method less prone to blocking. For Meta ads, utilize "Conversion API." For Google ads, implement "enhanced conversion tracking." Advertisers often experience a 20-25% improvement in results using these methods.

Keep it simple and sweet. Optimize ads, target keywords efficiently, and continuously refine campaigns for better performance.

The best and the most effective method to reduce CAC (Customer Acquisition Cost) in performance marketing is to "Fix / Improve conversion tracking data and to pass it to Google ads / Meta ads or a specific platforms". The obvious reason is; majority of the platforms are now offering advance bidding strategy optimized for ROAS (Return on Ad Spend). Once you fix the conversion value data and rightly in-corporate it, the bidding strategy work smoothly and you can optimize the campaign to meet your ROAS.

Optimisation is a never-ending job. You should launch your campaigns with a solid testing strategy in place (typically testing 3-4 value propositions). Once they go live, you'll start to gather data on which ones are performing best. Kill the worst-performing ads; reallocate the budget to the best performers. You'll start to see which value props are performing best and you can double down on those.

As the owner and CEO of a marketing agency, I wanted to develop a method for optimizing for CTR before launching a major campaign. We use what I call ad bursts to split test before starting our main campaign. This is basically beginning with the main ad and a split test. Next, we split test the best performing ad from the first split test. If we still aren’t reaching our target CTR, we may do it again or scrap the campaign and start over. We limit these ad sets to about 3 days so as to not burn too much ad spend. By optimizing this way, we can reach an ROI worth running through 2, 3, or 4 rounds of tests. You never know what will boost your conversion until you try everything. We have seen a 3% increase simply by changing a button color.

Our approach involves a technique we refer to as "ad bursts," which entails conducting split tests before initiating the main campaign. Essentially, we start with the primary ad and conduct an initial split test. Subsequently, we continue to split test the best-performing ad from the initial round. If we still fall short of achieving our desired CTR, we may repeat the process or consider starting the campaign anew. By optimizing our approach in this manner, we can attain a return on investment (ROI) that justifies running through multiple rounds of testing, whether it's 2, 3, or 4 rounds. We firmly believe that you never truly discover what can enhance your conversion rates until you've explored all possibilities.

Testing and optimizing ads is crucial for better performance. A/B and multivariate testing help identify top-performing elements like headlines, images, and copy. By eliminating low-performing ads, you can focus on those that attract more customers with improved CTR and conversion rates.

This does ring true, however we now face major barriers where we can't segment and achieve the results we once did due to the decline of cookies and stricter privacy regulations, disrupting traditional audience targeting on platforms like Meta and Google. It's crucial we focus on cookieless solutions, using first-party data and leaning into AI to find our audiences. - Integrating offline conversions - Building communities and securing user consent to grow first party data to provide to the platforms - Using programmatic platforms, solutions like contextual targeting. - Exploring Google Topics, identity solutions, etc. Giving the platforms the data they need to find more qualified audience will help grow AND reduce CPA.

Segment and target your audience by: Demographics: Consider age, gender, location, and income. Psychographics: Analyze interests, values, and behaviors. Behavioral Data: Use past interactions with your brand. Custom Audiences: Create groups based on CRM data. Lookalike Audiences: Find similar users to existing customers. Contextual Targeting: Place ads in relevant content. Remarketing: Re-engage past website visitors. A/B Testing: Refine targeting based on performance data.

I deeply agree with all that has been said here, but the first step to lowering your cost is to ensure you’re targeting the right people with the right message. This starts with your branding, marketing strategy, and marketing plan. If you have not worked through these 3 important pieces of marketing, then your burning money…especially in digital marketing. More traffic doesn’t always mean you’ll get more customers. More qualified traffic is what gets you more customers. When placing ads I would rather see less traffic and highly qualified leads, than high traffic and only some of them qualified. Ultimately the goal is to only pay for leads who have a high likelihood of converting into a sale. So, start with a strong strategy.

Effectively reduce CPA by segmenting your audience based on demographics, interests, and behaviors. Tailor ads and landing pages for each segment, monitor performance, and adjust strategies as needed. This ongoing process enhances ad relevance and lowers costs.

Segmentation is powerful! Divide your target audience into specific groups based on shared characteristics or behaviors. By doing this, you can tailor your marketing efforts to each segment, making your messages more relevant and engaging. By reaching the right people with the right message, you increase the likelihood of conversions, which in turn lowers your overall CPA. This approach helps optimize your ad spend and ultimately improves the efficiency of your marketing efforts.

Ensure that you have frequency caps in place to minimize clutter and not degrade customer experience on any platform. More often that expected, I see brands not having those checks in place, leading to annoyed consumers.

We've successfully converted by re-engaging with tailored ads and offers in the past. This helps in reducing CPA and increasing conversion rate.

Retargeting your prospects involves showing ads to individuals who have previously interacted with your brand or website but didn't complete a desired action, such as making a purchase or filling out a form. This advertising strategy aims to re-engage these potential customers and encourage them to return and convert, ultimately increasing the likelihood of conversions and maximizing the value of your marketing efforts.

Retargeting is a potent strategy for improving brand awareness, recall, loyalty, and conversion rates. It's particularly effective in reducing CPA, as retargeted audiences have higher conversion potential. Platforms like Google Ads and Facebook Ads enable you to create custom audiences based on user behavior, reinforcing your value proposition and prompting action.

Retargeting is crucial for these reasons: 1. Re-Engagement: It brings back users who've shown interest. 2. Targeted Messaging: Tailored messages increase conversion chances. 3. Reduced Abandonment: Addresses cart abandonment. 4. Higher Conversion Rates: Previous visitors are more likely to convert. 5. Enhanced Brand Recall: Reinforces brand recognition. 6. Maximize Ad Spend: Focuses on interested users, optimizing budget. 7. Improved ROI: Leads to higher return on investment. 8. Comprehensive Funnel Coverage: Targets users at different stages. In short, it's a powerful tool for boosting engagement, conversions, and ROI.

After launching a campaign, in search network, from scratch (manual bidding strategy) - first some data needs to be collected, spent to be reviewed well as received traffic KPIs. After some conversions are recieved, the strategy can be changed to max clicks, and a target CPA can be attached to it, which needs to be correctly calculated based on the account data. You can also set the ROAS strategy depending on the purpose of the campaign. When website traffic is increasing you can use the max clicks strategy. Strategy max conversions - when you need to attract maximum conversions within a given budget. Target CPA is to increase the number of conversions at a given price. Target ROAS helps to increase the value of conversions at a given ROI.

One thing I've found helpful other than all the ingenious tops mentioned here is actually focussing on the content. Figuring out the buyers persona, understanding their purchasing behaviour and curating something that directly resonates with them. It could be for a generic buyers persona or targeted one based on your top performing products/services. Reducing CPA is directly proportional to the strength of your marketing content.

Analyzing Data: Review performance metrics. Setting Clear Goals: Define your campaign objectives. Adjusting Bids: Increase or decrease based on performance. Using Automated Bidding: Employ AI-driven tools. Testing Strategies: A/B test bidding approaches. Monitoring Competitors: Stay competitive in auctions. Ad Schedule Optimization: Bid more during peak times. Budget Allocation: Allocate budget to top-performing campaigns. Ad Positioning: Bid for optimal ad placements. Long-Term Strategy: Consider lifetime customer value.

Refining your bidding strategy is essential to manage costs and maximize ROI. Choose the right bidding model, whether CPC, CPM, or CPA, and consider automated bidding for efficient optimization using machine learning and historical data. This fine-tuning enhances control over your budget and ROI.

To refine bidding strategy, select the appropriate bidding strategy based on objectives, whether it's manual CPC, automated bidding, or target ROAS bidding. Segment audience to tailor strategies to different segments, and leverage bid adjustments for factors like location, device, and time of day. Experiment with different bid levels, focusing on quality score improvement in platforms like Google Ads. Monitor competitor activity, allocate budget wisely, and regularly review and adjust your bids based on real-time data. Prioritize ROI and employ A/B testing to fine-tune bidding approach.

It’s hard to believe we got this far exploring the topic without mentioning the elements of your landing page. A CPA (cost-per-action) landing page is a standalone web page that uses persuasive elements like testimonials, persuasive and engaging copy, teaser videos etc to convince your target that they landed in the right place and the final step is worth it and applies to their interest. Considering where the click was generated is important, particularly social. Generative AI will make this even more difficult as words get commoditized. We need to focus on humanization, personalization and warmth. Contextualization within your own brand may actually help rather than hurt this effort, if it’s well established.

Here are some of the ways by which we can work on reducing the CPA. 1. Lowering the bids for your high spending keywords. (You need to run a keywords analysis where we can walkthrough the performance of the keywords & find out the best converters and also the high spending one). If there is such keywords with high spends & low conversions, you can start reducing the bids for the same. 2. Keep working on SQR (To find out the high CPC search terms, pick them move to the new adgroup and try to create such ads which is more relevant to your term). This will help in reduce in the CPC by increasing the quality score simultaneously helps in reducing the cost. 3. Optimize your LP, proper text, graphical representation and CTA should be used.

Often, the best way to improve your CPA is to improve your content, including graphics, copy, or messaging. Your targeting can be perfect, but if your messaging isn’t getting through or optimized, you’re not going to convert as well as you could. Build a solid content foundation before you scale paid ads.

Someone once said, right time, right message, right content. I highly recommend auditing these three elements next time you run a paid campaign. Odds are there is room for optimization. Doing this will allow you to ensure your budget is spent wisely. For example, optimizing your message (landing page and ad content) can make the world of difference in reducing your costs.

Here are a few quick hacks for Google Ads only - Leverage Negative Keywords: Regularly review and add negative keywords to prevent irrelevant clicks. This reduces wasted ad spend and improves the quality of your traffic. Turn your Broad Matches to Phases Matches: It will reduce unnecessary spending. Include websites and platforms on Display Ads: It will help to reach the right customers in the perfect places. List down the websites and apps where your relevant audience spends their time. Only include them on the list to promote. Google will show your ads on those selective websites and apps, reducing your unnecessary costs.