Case study: how to lower the CPA by 61% in 3 months?

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DigitalMenta

SEM · 07 / 06 / 2016

We all want to pay as little as possible for a conversion and to achieve this, we have to take strategic measures in our accounts and do a continuous optimization job. In this article, you will find tips, concrete and easy actions that can be used in your Google Adwords accounts and that can help you improve your results, INCREASE the ROAS and keep your customers happy.

Objectives

Next, we present the case of success of a private center dedicated to the training of sports technicians of football, with which we worked for 5 months. When we started working with them, the cost per conversion was above what the customer could pay (€15 CPA), and our main goal was to increase the number of conversions and get a much smaller CPA than we had, to be able to be profitable through the Google Adwords channel.

Reduce-CPA

Increase Conversions and reduced CPA

Success Story: Strategy and Actions

1. Structure

As soon as we have a new account the first thing we do is review and analyse the structure of the campaigns; In most cases, our first action is to re-structure the account completely to give it a ‘ fresh start ‘, and to have campaigns and groups that are most relevant to the structure of our clients website.

What we’ve noticed in this case was that the original campaigns of the account, although they didn’t have the granular structure that we’re promoting in Digital Menta , nor a segmentation of keywords by match, with 90% of the traffic coming through broad concordance, had a high quality score. What we decided to do was apply the logic of ‘not breaking what already works’ and the re-structuring process has been done in a slower way, through the reports of search terms, separating step by step the words with a CPA above the desired one.

This approach was aimed at maintaining a high note of the Quality Level And thus reduce the total CPA of the account. By isolating ‘ The losers ‘ from ‘ The winners ‘, that is to say the keywords with a high CPA of those that have a good performance, we can have separate budgets for each one of them.

The Search terms Report It is one of the most powerful tools to use in this type of case. It shows us both the search terms that have a positive return, such as those that are, for example, irrelevant or too broad and generate negative income and that can be excluded.

2. Have a Bid Strategy

In another article in the blog we are telling you how to use a Manual bidding strategy And the importance of including exact matching keywords in the account, starting with the reports of Search Terms. A manual bidding strategy helps us to have a greater control over the keywords and to be able to adjust them individually, depending on the historical data of the account. This strategy requires a disciplined application method, and adding exact words in every given time period by adjusting bids in the same way (depending on the time required to obtain statistically relevant data in our accounts) .

3. Create Relevant Ads

As our client offers training courses in various locations in Spain and having noticed that many searches contain the location, we have decided to segment the main campaign by locations and show more relevant ads for each of They, including the name of each one in the Title (although the term does not contain it, since the searches come from that geographical region). We’ve noticed an increase in CTR from 4.26% in March to 7.39% in May.

Increase CTR

Increase CTR

This has brought us an increase in the quality note and therefore a decrease in CPC, from €0.25 in February to €0.21 in April.

4. Final Results

We have managed to lower the CPA from €14.76 in January to €9.75 in May, a decline of 61%. Conversions have also increased from 66 in February to 85 in May! The results obtained are very satisfactory and show that a constant work of optimization and re-structuring generates an increase of ROAS in Google Adwords and a positive return of the advertising investment.

Conclusion

We got him! Our Success Story With concrete actions that can be used to reduce the cost by conversion and improve the performance of Your Adwords accounts: Play with the campaign options, segment by location, isolate the losers of the winners, pause the words Low-performance key, use manual or automatic bidding strategies and more…

Keep in mind that these types of changes do not always have an immediate effect and require a process of continuous and disciplined optimization to achieve the desired results. Patience ????

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