Stop Paying Crazy CPA's (Cost Per Acquisition) For Your Brand
Updated: May 4
Facebook Ads are at the top of the game when it comes to generating new sales leads. Unlike Google and other digital marketing platforms, Facebook's advantage is its laser-focused targeting capabilities, which keeps it at the top. Due to the vast market and targeting strategies, marketers will often find themselves spending a fortune on ads.
Facebook’s audience to target is limitless. Being able to generate interests and allow you to choose which demographics you want to market to are only some of the features that put it at the top. Although, due to these endless resources available, advertising a product with different ad types can quickly make you run through your marketing budget.
Most Facebook users spend hours a day on the app. This means that it's your best option for reaching customers, there are millions of them right at your fingertips. Marketing to all of them can be costly and spending hours a day marketing to them generating and testing new ads is a good way to lose money. In this article, we will discuss ways to have effective and affordable cost-per-acquisition marketing strategy tips.
What is Cost Per Acquisition?
Let's look at what Cost per Acquisition is. Cost per Acquisition (CPA) is a metric that shows how much you spend on acquiring each customer. Marketers should consider many metrics when they choose how to market and their ad placements. Compared to a different metric, cost per click, the CPA will always be much higher since making a customer buy something is more difficult than simply having somebody click on your ad.
How Facebook Charges You For Ads
Let's take a look at how Facebook charges for ads. When setting up a Facebook ad campaign, there are two cost and marketing options. You can either choose to be charged by impressions, or link clicks. Link clicks are defined as cost per click and are often the first choice for people marketing on Facebook, as it only charges you for each person that clicks on your ad.
The other option is to charge by impressions, meaning that you'll get charged per view. If a Facebook user sees your ad on their page, you will be charged, even if they don't click on it.
Marketers can change how they get charged on their ‘Budget & Schedule’ section of the Facebook page ad settings. Depending on your settings, some will limit you to only being able to choose impressions.
How Facebook Ad Costs are Determined
Total ad costs are determined by several factors and can vary tremendously. Being able to understand what affects your ad costs can help you save a lot of money when running an ad campaign.
Let's look at some examples:
Ad placement: Where you choose to place your ad comes with different impressions and CPC. This means that you can save on costs by scrapping high cost and low performing ad placements.
Bidding Strategy: Bidding strategies come with different sets of advantages and limitations. In your settings, you can alter your cost and bid limit, making it so you are avoiding unnecessary and expensive clicks.
Relevance Score: Your ad campaign relevance score can significantly alter how much your CPA is and how often your ad will display. The higher the score, the better results and lower costs, and vice versa.
Display Schedule: Your display schedule changes what times of day, year, and which days of the weak your ads will show. A favourable schedule depending on your product can determine how well your ads perform.
Target Audience: Lastly, we’ll talk about the target audience. While some demographics are highly sought after, others aren't. This means it's more expensive to have your ads only shown to one target audience.
Find The Best Performing Demographics
If you’ve looked into Facebook marketing, you'll know you have an almost limitless amount of data that can significantly lower your ad costs. From the demographics to choose from, find the best-performing ones and market to that audience that is supported through the metrics you are provided.
By using these metrics you're able to analyze and determine which ads do well in which demographics and how each one performs. By doing this you've opened a new door. You'll be able to delve into the different age categories, gender, and so much more. Now that you've identified what demographics work best for you, you can narrow your ad targeting to only include such demographics.
Included with this, being able to identify why an ad performed better in one group, and poorly in another is essential. Identifying the causes will help you implement specific ad campaigns that will appeal very strongly to some targets, or make them re-evaluate your ad.
Let's say your ad is focused on acquiring more users. If you find that ads perform better when you target younger audiences, it implies that this is whom your ad resonated better with.
Using this information you'll be able to target specific products to more specific demographics, so you can focus your resources on where you know your products will likely sell the best. Rather than wasting time and money testing out new demographics, focus on the ones you know will work.
Optimize Your Landing Page
Many reasons marketers get high clicks on their ads but then face poor acquisition is because of their landing page. Your landing page can significantly change the course of a sale and how well you do as a business.
The golden rule of high conversion rates is having a simple and clear landing page. If you have a cluttered and complicated landing page, many people will click away. Rather than redesigning your whole landing page to fix this, make your landing page relate to what your demographics would be interested in.
Some simple ways to optimize your landing page are as follows:
1. Make Your Offer Easily Understandable
Your Landing page should have one goal, generating leads. With a clear purpose in mind, each item on your landing page should push a customer further toward this goal. Don't attempt to accomplish more than one goal on your landing page.
2. Simplify Your Landing Page
Your landing page needs to be simple. Don't clutter the sides with ads, videos, and anything else that will divert your customers' attention. Keep the landing page simple and keep their attention by providing them with what they came to your page for.
3. Have A Straightforward Call-To-Action
Don't confuse your customer with anything. Keep your call to action simple and straightforward.
4. Include Essential Information
Having essential information includes alternate forms of payment, contact information, articles, and product and business information. This gives a sense of trust to your customer. Rather than having a blank landing page that simply tells a customer to buy something, you're giving them information that makes them more likely to trust you and your brand.
Try Out Video Advertising
Besides content marketing, visual and video marketing are one of the more rewarding marketing strategies. Wherever and whenever you can, use videos to reduce your costs. On average, videos cost about 10% less than a single image ad. This means that while you're creating more impressions and shares, you're also saving money.
By using videos to create impressions and get people to click, you’re also creating more of an imprint on your potential customers. Effective visuals and videos are seen to make potential customers remember you better than if they saw an ad since they see those every day. But what they don't see is a well-made video that clearly identifies why they need a certain product.
Using these strategies listed you'll be able to significantly reduce your cost per acquisition. By utilizing these techniques correctly, saving money will be easier than ever.
With a strong landing page, understanding your metrics, and sticking to popular demographics, you'll find that your marketing budget will not decline as swiftly, allowing you to spend it on other techniques that will take your sales to their maximum.