SEO

3 Steps to Reducing Search CPA’s in Half!

image0013 3 Steps to Reducing Search CPA’s in Half!

Is your paid search program under performing    Do you need to find a way to decrease your CPA’s?  These are the first steps you should take to improve performance.

1.    Locate “Bleeder” KW’s

  1. Run a KW report for the last 90 days – Include conversions, CPA, and conversion rate
  2. Filter for KW’s greater than 2X your CPA goal – i.e. if your CPA goal is $10, filter for KW’s with a CPA greater than $20
  3. Filter for KW’s with clicks greater than 100 – You want to focus on high volume terms that have enough statistical significance to show true performance.
  4. Decrease your bids on these terms – As a rule of thumb, bids shouldn’t be much higher than your Conversion Rate (conversions/clicks) multiplied by your Goal CPA.  i.e. if your Conversion Rate is 2%, Goal CPA is $10, you don’t want to pay more than $0.20, so you set that as your max bid.

2.    Locate “Bleeder” Ads

  1. Run an Ad report for the last 90 days – Include conversions, CPA, and conversion rate
  2. Filter for Ads with clicks greater than 100 – Only focus on Ads that have enough volume and data
  3. Pivot Ads within Ad Groups – Pivot the filtered data to show Ad Groups and Ads for each ad group.  Sort by highest volume first.
  4. Calculate CPA Delta – Calculate the Delta between ads using this formula: (Best Ad CPA – Other Ad CPA)/(Best Ad CPA).
  5. Pause Under performing Ads – If an Ad’s CPA is 2X higher than the top performing Ad within that ad group, you should pause it.

3.    Add the Good, Remove the Bad

  1. Run a Search Query report for the last 90 days – Include conversions, CPA, and conversion rate
  2. Filter for queries with clicks greater than 100 – Only focus on high volume queries you are mapping to via Phrase/Broad
  3. Locate “Severe Bleeders” – Similar to KW’s, are there any queries you are mapping to that have a CPA 2X your goal?  If so, consider adding these as exact level negatives.
  4. Locate “Efficient Queries” – Are there any queries you are mapping to that are outperforming your CPA goals?  If so, consider adding them in as exact match KW’s if you don’t have coverage.

If you follow these steps, you can drastically improve the performance on your paid search campaigns.  Depending on how under performing your campaigns are, you can decide to be more or less aggressive with these steps.

Once finished, you can go enjoy the fruits of your labor!

2e2ce85 3 Steps to Reducing Search CPA’s in Half!

Alexander Dao

Senior Manager, Enterprise Sales & Business Development at DataPop
Alexander Dao is a Senior Manager at DataPop.com and Chairman of SEMPO LA. Before DataPop, Alexander managed Yahoo! inc.'s largest retailers.
2e2ce85 3 Steps to Reducing Search CPA’s in Half!
2e2ce85 3 Steps to Reducing Search CPA’s in Half!

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One thought on “3 Steps to Reducing Search CPA’s in Half!

  1. This is a great mid-level PPC article that will give people a platform for measurement right off the bat. Very good article. Good to see some real “meat” in here in regards to where to cut, where to add to negative keyword sets, etc. Thanks for the write-up!