Cost per Acquision (CPA) basically is a bidding technique in Google Adwords which decides the amount to be charged by Google when it shows up your ad in search page and the goal of your ad is completed. Optimizing CPA campaigns lets you determine the budget of your campaign. CPA tell you the cost of completing a determined goal you identify for your campaign.
Usually CPA is higher than CPC as not everyone who clicks on our ads will go and complete a given action be it a purchase or a lead or a call.
CPA is calculated by dividing Cost by conversions.
What is that decides your CPA? Like all the other factors, Quality Score affects CPC. In layman’s terms the higher your Quality score the lower your cost. Quality Score plays a vital role in determining your Cost per conversion. So if you want to lower your CPA you must work up on build a great Quality Score for your ad. Qualtly Score depends upon many factors like:
- Ad relevance
- Landung page quality
Here we get a clear view how having a below average Quality Score will increase your CPA, relative to your competitors. So, if you want to lower your CPA, you must work hard to improve the Quality Score of your Ad.
The image Above shows how much you’ll save on cost per action if your Quality Score is higher.