• Cost-per-thousand viewable impressions (vCPM)
  • Cost-per-acquisition (CPA)
  • Cost-per-view (CPV)
  • Cost-per-click (CPC)

The answer is:

Cost-per-acquisition (CPA)

Clicks are often seen as the holy grail in the paid acquisition world. If you think about it, clicks are only a sign that someone arrived at your content. Clicks do not reveal whether the visitor stayed or not.

How do you know whether your content is engaging and emotionally resonant enough to motivate your audience to stay and eventually buy your product or service? Conversions are perhaps the most powerful and evident metric for determining whether your creative was worthwhile – if it convinced someone to download or even buy something, then it was worth it.

The best way to evaluate the converting capabilities of your content, and, ultimately, its resonance, is by measuring the cost per acquisition. In this article, you will learn what it exactly is, how it is calculated, how its bidding process works, and some principles for crafting creative and persuasive ad copy.

With cost per acquisition, brands pay for every sale or form submission generated by an advertisement campaign when advertising on online advertising platforms.

A cost per acquisition pricing model is preferred by most acquisition marketers because it allows them to define an acquisition before they advertise and only pay when their acquisition or action occurs.

Cost Per Acquisition Bidding

Cost-per-acquisition auctions are different from your typical antique auction. Platforms like Google, which leverage the size of their reach, level the playing field by ensuring the top bidder always wins, instead of the highest bidder always winning.

The AdRank of your ad is calculated by multiplying your maximum cost per acquisition with the quality score of your ad, which is determined by the relevance of your page to the keyword, the user experience, and the click-through rate. In other words, organizations cannot obtain the top ranking for any keyword just because they spend the most on advertising. They must have engaging content.

In order to encourage the best advertisers to advertise the best content on their search engine results pages, Google rewards high-quality ads with higher rankings and lower acquisition costs.

Also, they wish to discourage bad advertisers from advertising bad content, so low-quality advertisers usually only get a high ad position if they pay a high cost-per-acquisition. They will have to settle for stooping at the bottom of the ad ranks if they want a lower cost per acquisition bid.

Using Google’s target CPA bidding will allow you to generate the most conversions within the confines of your advertising budget. Bidding for target CPA uses machine learning to analyze your campaign’s historical conversion data, recommend a target CPA that is optimal, and automatically optimize your bids to meet that target CPA.

Target CPA bidding may result in some of your conversions costing more than others due to your quality score or competitive environment, but Google will do everything in its power to keep your cost per acquisition as close as possible to your average target CPA.

Cost Per Acquisition Formula

The cost per acquisition of your advertising campaign can be calculated by dividing the total advertising spend by the number of acquisitions.

What you need to know about optimizing your cost per acquisition

A compelling ad and landing page copy is the most effective way to optimize your cost per acquisition costs since your quality score, which measures how positive and relevant your content is, is the most influential factor in ranking your ads high and generating more conversions.

You should write your ads or landing pages in a way that can catch the attention of a distracted millennial slouching in front of the TV, slurping pizza in one hand and holding a smartphone in the other.

Which process is best for ensuring your audience ignores the pizza, clicks on your ad, and converts on your landing page? Create compelling ads and landing pages by following this three-step process.

1. Captivate your audience’s attention

In marketing, a little intrigue goes a long way. Rather than respond to our world, humans are biologically driven to investigate it. In addition, if you create enough curiosity in your audience so they cannot resist clicking on your ad, they will click on it. Make sure you emphasize the benefits of your offer in a clear and persuasive fashion without divulging too much information about your offering.

2. Create an emotional connection

Logic explains our actions after the fact, but emotions are the driving force behind our behavior. People associate the same personality traits with brands as they do with people, according to marketing research. Making a choice between two alternatives takes much the same amount of effort as picking between best friends or significant others. Who we choose to spend the rest of our lives with makes us feel something.

The same reason is why pitching a product’s features is a lousy way to persuade. Science suggests that appealing to the logical parts of your brain doesn’t drive action as well as appealing to the emotional parts of your brain. Make sure you appeal to both the emotional and the logical parts of your brain when writing copy.

3. Create a simple yet effective landing page

The fact that your ad has captured someone’s attention doesn’t mean your job is done. Our offer still requires a compelling landing page that conveys its value clearly.

Consider making your audience curious with an intriguing headline and subheading, getting rid of any external links from your landing page so visitors can only leave your paid acquisition funnel if they exit or convert, and testing out video, which explains the benefits of your offer more effectively than text.

Conversions are more important than clicks.

Marketers will chase vanity metrics until the end of time, and you might feel pressured to do so, especially when you hear about your competitors’ massive growth in views and clicks.

Remember that, in marketing, you’re trying to persuade someone to take your desired action, so if you ever feel tempted to jump on board, don’t. Incentivize your brand to resonate with your audience — that’s what keeps people on your content and makes them want to take action. Rather than clicks, make conversions your carrot.



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