First, maybe you’re wondering – what is CPA, and what does it even stand for? Hang in there; we’re going to explain everything.
So here’s the thing. We’ve told you – twice, now – that we’re going to access all the analytics you should care about when it comes to measuring your ad performance. No one wants to spend an extra penny than they need to, and we’ll make sure that won’t happen.
But what exactly are these analytics and fancy acronyms?
CPC vs. CPA
We’re going to let you in on a ~industry secret~. With digital marketing, most companies focus on CPC, which stands for cost per click. This just tells you the cost of a potential customer interacting with your ad. But think about it – not every customer who clicks on your ad is going to buy your service or product. So we probably shouldn’t focus on CPC above all else, like too many brands tend to do.
What we really care about is CPA, which stands for cost per action. It looks at the number of ad clicks it takes to turn a prospect into a paying customer.
Really, this metric sums up a bunch of CPC actions, which makes sense when you think about it- a customer purchasing your product always happens after they’ve clicked a few times (on your ad, on your website, on ‘Add to Cart,’ and so on). So yes, CPA is more expensive than CPC (CPC + CPC + CPC + CPC= CPA, for instance). But this higher price should NOT deter you, because it’s a far more accurate look at your customer acquisition cost. The payoff is certainly greater. You’re paying a bit more right now to ensure you get more paying customers.
Raising your Quality Score
Our job is to focus on LOWERING your CPA. Does that make sense? Obviously, you want to spend as little (by guaranteeing that your customers click as few times as possible) to get that purchase, or action.
So how do we lower your CPA?
The first, and main way to do so is through your quality score. Remember we mentioned that our two services for PPC marketing are Google AdWords and Facebook Ads. Well, Facebook and Google rank you by looking at the quality of content on your webpage, the key words used, and the ads displayed. The higher your quality score, the lower your costs (or CPA) will be.
Check out the figure below for a visual explanation. As you can see, a quality score above 5 will decrease your CPA – which is the goal. But a quality score below 5 will increase your CPA, and that’s what we want to avoid.
This is where we come in. As we’ve said before, we raise your ad rankings and lower your advertising costs….by raising your quality score. Our keyword research expertise and killer ad copy are just some of our methods.
The idea is that we define the metrics of your campaign to perfectly fit your target market. No money wasted on the wrong search terms or an unattractive ad. By using CPC bidding, you’re only paying per conversion – that is, per customer.
Don’t worry if this still feels like a lot of information to take in. Once you sign on to work with us, we’ll take the lead and answer any questions that you have, no matter how big or small.
If you’re new to Sprwt, don’t hesitate to LEARN MORE about us by booking a demo with one of our agents. Or maybe you’re ready to update your Sprwt software to the next level – especially now that you have a taste of our marketing services. Click here https://calendly.com/sprwt/demo/?month=2021-01 to book a demo today!
And, check out our customer testimonials at https://sprwt.io/our-customers/ to get a glimpse of your future success with Sprwt.