How to Reduce Cost Per Acquisition

There are several high-impact strategies marketers can rely on that reduce campaign costs and maximize performance

Cost per acquisition (CPA) is a metric used in digital marketing to measure the total expenses incurred when acquiring a new customer or lead. It’s a valuable way to evaluate the effectiveness of campaigns while creating opportunities to optimize ad spend. In this article, we’ll discuss how to reduce cost per acquisition in ways that maximize returns and revenue.

Read more in Cost Per Acquisition: The Complete Marketer's Guide.

How To Reduce Cost Per Acquisition?

When determining how to lower customer acquisition cost, businesses must implement effective strategies to minimize their cost per acquisition (CPA). By focusing on efficient and targeted marketing efforts, optimizing conversion rates, and leveraging data-driven insights, companies can successfully lower their CPA and improve the overall efficiency of their customer acquisition processes. Creating a comprehensive plan that incorporates these strategies will allow businesses to allocate their resources more effectively and achieve a higher return on investment.

Set Objectives

To optimize with a clear objective in mind, it is essential to diligently map out daily, weekly, monthly, quarterly, and annual goals and objectives. This involves breaking down the overall objective into smaller, achievable tasks and setting specific timelines for completion. Planning and preparing in advance is crucial to effectively manage uncertainty and mitigate risks. This means anticipating potential challenges so you know how to reduce cost per acquisition as they arise. These efforts should be continuously monitored and adjusted to ensure that the objectives are being met and that optimization efforts are consistently aligned with the overall business goals.

Optimize Ad Copy

Are you looking to increase your ad engagement and drive more qualified leads to your website? It's time to update your ad copy to align with your ad objectives. By analyzing your current messaging and making small tweaks to your call-to-action (CTA) and copy, you can better target your audience using action-oriented language and urgency to compel visitors to act.

Test your ad copy by identifying the best-performing ads and pausing low-performing ones. Then, write variations of the stronger ads to further optimize your messaging. Including keywords like ad copy, messaging, CTA, action-oriented language, and urgency will help you reach your target audience more effectively.

With less than 200 words, you can update your ad copy and see immediate results. Take the time to refine your messaging and CTA to ensure you're reaching the right audience with the right message.

Optimize Landing Pages

A clear and compelling landing page is essential so you can quickly communicate the value of your product or service to visitors, capture their attention, and encourage them to take the desired action. Engaging visuals, such as high-quality images and videos, can enhance the visual appeal of your offering and help reinforce your messaging. That’s why optimizing your landing page is crucial for converting visitors into customers.

First, ensure the campaign and its landing page are aligned to maintain a consistent and seamless experience for the visitor. Prioritize a streamlined conversion process to guide visitors through the desired action, whether it's making a purchase, filling out a form, or subscribing to a newsletter. Remove any unnecessary steps or distractions that could deter visitors from completing the conversion.

Lastly, don't forget about mobile optimization. With a growing number of users accessing the internet on their mobile devices, it's vital to ensure that your landing page is optimized for a seamless experience on all devices, including smartphones and tablets. By implementing these key steps, you can create an effective and high-converting landing page for your business. Conduct usability tests on your mobile website to identify any pain points or obstacles that may be hindering the user experience and negatively impacting conversions. Prioritize mobile optimization for conversions by making sure that your website and ads are fast, easy to navigate, and provide a seamless experience on mobile devices.

Leverage Retargeting Strategies

Using retargeting strategies can significantly increase conversion rates by bringing back potential leads who previously showed interest in your products or services. This targeted approach also helps to reduce acquisition costs by focusing your advertising efforts on qualified leads who are more likely to convert. Overall, utilizing retargeting techniques can help you optimize your marketing efforts and maximize the impact of your advertising budget.

By adding a retargeting tag to your website, you can create a retargeting list that displays compelling ads via other sites within the Google Display Network. This keeps your brand top of mind and encourages them to return to your site.

Streamline the Checkout Process

One way to optimize your checkout process is by being transparent about the total purchase amount, including shipping fees. Customers appreciate knowing exactly how much they will be spending before reaching the final stages of the transaction. Additionally, it's critical to fix technical issues like website time-outs and crashes, as these can lead to frustration and abandonment of the purchase.

Running A/B tests is another effective way to optimize the checkout process. By testing different elements such as CTA placement and messaging, you can identify which options have the highest conversion rate. This experimentation allows you to continually refine and enhance the checkout experience for customers.

Make tvScientific Your CTV Partner 

tvScientific was co-founded by senior executives with deep roots in search, programmatic advertising, digital media, and ad verification. We think scientifically, and our results are driven by a belief in one, simple formula: Trust = Data x Transparency x Control.

With powerful attribution capabilities, real-time reporting, automated optimization, and built-in, always-on testing, we believe that tvScientific provides the most robust, transparent, tailored CTV advertising platform. Once you see it for yourself, we know you will too. Request a demo today.