Cost Per Acquisition (CPA) is the bidding strategy used in the Google Adwords. CPA is also called as the cost per action or pay per action strategy. As a business people, you will pay for Google only if the user takes any specific action on the website like purchase or payments. CPA is the E-Commerce marketing strategy that measures the aggregate cost to acquire one paying customer.
Why CPA is Important Metric?
Conversions rates are the primary indicator of marketing success when it comes to the E-Commerce sale or other business. Cost per acquisition is the bidding strategy in the Google Adwords which lets you pay for Google one and only if any specified actions like purchase or sales happen on your website.
Cost Per Acquisition is used in the paid marketing mediums like,
- Pay Per Click
- Affiliate Marketing
- Display Network
- Social Media Marketing
- Content Marketing
How Target CPA Works?
Target CPA allows you to set the average amount that you need to pay for each conversion on the website. Target CPA that you set may influence the number of conversions. Setting too low target CPA may result in reducing the number of clicks which may result in the Conversion. If there is a historical conversion data in the Campaign, then the AdWords will automatically suggest the Target CPA for you.
Setting the bid limits in the target CPA is not recommended as it will stop the Google Adwords from adjusting your bid to make more clicks for your Ad. And also if you set bid limits it will be used only in the search network campaigns. So it is recommended not to set the maximum bid limits in the target cost per acquisition strategy.
Device Bid Adjustments:
Device bid adjustments in target CPA allows you to prioritize the conversions based on the devices. You can set the bids to devices like desktops, mobiles or tablets. For instance, if your target CPA is £100, setting a bid adjustment of +50% on mobiles will increase your target CPA to £150 for mobile devices. And also if you don’t want to target the mobile devices you can adjust the bid to -100%.
Average target CPA:
Average target CPA may differ from the target CPA that you set. By using this you can measure the CPA that your bid strategy targeted for the specific time periods.
Thus using the Google Adwords you can target the potential customers for your business based on several demographic options like age, gender, location, etc. Cost per acquisition is the bidding strategy by using which you can pay for Google based on the number of conversions or any specific actions happens on your site. For E-Commerce Business CPA will help you to measure the conversions happened by using the Google Adwords. As a business people to be successful in online marketing avail Pay Per Click services from the best digital marketing company in the city.