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Cost-per-acquisition (CPA) is how brands measure the efficiency with which they acquire new customers. Also known — by some, anyway — as “cost-per-action,” CPA can cover a range of activities, from buying something online, signing up for a newsletter, to downloading an app or an e-book. In short, CPA is a starting point.
Understand Your Target Audience B2B marketers must have a deep understanding of their audience’s needs, challenges, and behaviors, as this information will guide the creation of relevant and compelling programmatic campaigns and spearhead B2B retargeting efforts.
Retargeting Ads: Reach out to users who have shown interest by visiting your website or specific product pages. Run retargeting ads that target users who have visited your pricing page. Cost Per Lead (CPL) : This metric calculates the amount of money spent on marketing campaigns to generate one new lead.
Further, as Google Ads’ cost-per-lead (CPL) continues to increase at the same time as its conversion rate goes down, Sprout Social notes that LinkedIn’s CPL is 28% lower than Google’s, while the average CTR ranges from 30% to 65% depending on the ad type. At the end of the day, it’s CPA (cost per acquisition) that matters.
However, advertising can be expensive, so Axure knew they needed help attracting new clients while decreasing CPL costs. Google Ad spending decreased by 60%, and they maintained an average of $10 CPL. Since they were attracting leads from their own resources, this decreased the CPL and avoided other budget issues.
Finally, we decided to create marketing capital by creating a retargeting list of people who converted in this first campaign. The upper bound of a budget is generally done according to the rule of the multiple of the max CPA. With tracking, we can also determine the performance factors or not.
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