CPA or Cost per Action – sometimes cost per acquisition, although this is not as common a term – is a way to work out what you will need to pay in order to get people using your services. It is going to cost more to work under the cost per action system than it will cost per click as while many people will click on a link, in order to gain more information, not all will go any further. It could be that the link does not take them to anything they want, or simply because they are trying to get information at that stage rather than actually making a purchase.
In order to be paid, there needs to be further stages reached and this will mean it takes longer to get to the place the site owner wants the contact to be. As a result, cost per action takes account of the number of people who will click through the link before they progress and signs up. In the more used expression this will be “converts”.
Quality scores will be the main thing that has an impact on Cost Per Action. Google has a quality score that is judged on the standard of the keywords used, the ads included and also the quality of the landing pages that can be reached. If you can get a high cost per acquisition score, then costs will be lower and single points do make a difference. The average quality score is five, and for every point you are able to get your score above that you will find that cost per acquisition will actually drop by around sixteen percent.
Small things such as this will allow the PPC budget to remain low and as a result it will cost a lot less to get a great deal of exposure. You will find that once you have a large amount of advertising space, more and more people will be visiting the site and the amount it costs you is not going to be excessive.
For the best results, remember that AdWords Quality score can be just as important as when it comes to working out what your cost per conversion will be as well as the price for you cost per click. Simply put, a high quality score is equal to a low Cost Per Action.
