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No matter how big or small your business is, digital marketing is relied on for bringing in results. It’s not just about getting clicks. How many of those clicks have stayed loyal to your brand, and at what cost? The term “Cost Per Acquisition” or “CPAs” gets thrown around a lot in the marketing world, but what does it mean and how can it benefit your marketing efforts? We’ll break it down for you. 

What is Cost Per Acquisition (CPA)? 

CPA is a metric that measures how much it costs to acquire a customer or lead through a specific marketing campaign. This can be through making a purchase through a website or social media, (Yes, People are actually shopping on social media.) signing up for an email newsletter, filling out a contact form and more. Simply put, CPA helps marketers understand the effectiveness of their campaigns by seeing how costly it is to receive a desired action.  

How to Lower CPA 

Making sure your CPA is low is key to increasing your ROI and ensuring your time and funds are not wasted. So, how do you get the most out of your campaign? 

Target the Right Audiences 

It is crucial to focus on the right people who are most likely to convert. Eliminate anyone from that audience who has not generated recent sales in the last three months. Do your market research to understand who the right people are, their preferences and their needs.  

Optimize Ad Copy 

Your quality score – the measurement of how relevant and positive of an experience your content provides – is the most influential variable in securing a top-ad rank. This means that creating compelling ad copy is the best way to optimize CPAs. Try to create something compelling enough to catch the attention of a Gen Z who is juggling their phone in one hand and a coffee cup in the other. 

Enhance Landing Pages 

Your content strategy doesn’t just stop with ads; you must make sure your landing pages also convey the value of what you’re offering. This can be accomplished by creating intriguing headlines and CTAs (Call to Action), user-friendly pages and aesthetically pleasing designed pages for conversions, not confusion.  

How to Calculate CPA 

You only need two things for this part: the total cost of your marketing campaign and the number of people who took the desired action. For example, if you spend $1,000 on a LinkedIn ad campaign and it brought you 50 new customers, your CPA would be: 

CPA = $1,000 / 50 = $20 per customer 

Cost Per Acquisition is a vital metric for all digital marketers, and understanding how to calculate and optimize it can lead to creating more efficient campaigns. CPA is not a static metric though. It is used for ongoing evaluation and real-time adjustments to drive success. Remember, it’s not just about the clicks – it’s about persuading someone to act on the desired action you want, to make conversions.  

Interested in learning more? JSK Marketing is here to help. If you are looking for guidance or wanting to partner with us, feel free to reach out. We would be more than happy to assist you with your marketing needs. Send us a message today or give us a call at 904-206-8994 to get started! 

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