Price per leads (or price per sale, price per acquisition) is what you as an account supervisor are optimizing in direction of. You and your consumer have a set aim of what you assume you’ll be able to hit to stay worthwhile. You may additionally end up able the place you aren’t hitting your CPL threshold and it’s greater than you and your consumer approve. So how do you diagnose what the issue is? I’ve discovered just a few step-by-step methods of taking a look at your account and diagnosing the issue of a excessive CPL.
Evaluate key phrase bids:
Evaluate what you’re paying for a click on. What I love to do is filter out any key phrases which are changing for the final 30 – 60 days; from there, I drill all the way down to which key phrases are racking up prices however aren’t changing.
There’s a caveat to this: in case your consumer has massive nonbrand key phrase protection, it is very important ask your self in case your account can deal with the prices of a nonbrand, broad key phrase time period. The key phrase could also be driving up prices as individually, however it might be driving decrease funnel visitors and getting used as a extra consciousness key phrase. It is a next-level search technique that will get you to query what’s your total account CPL threshold.
Dig even deeper and separate out the varieties of campaigns you’re working, aligning them inside the advertising and marketing funnel. Work out together with your consumer or your account workforce what varieties of CPLs your account can deal with whereas nonetheless working towards a blended CPL throughout all campaigns.
Evaluate your branded bids. It is very important perceive what you’re paying to your branded search visitors vs your nonbranded search visitors.
In case your branded phrases are seeing a spike, that is probably because of opponents bidding in your model and driving up your individual prices.
Usually, you need to have decrease prices in your branded phrases than in your nonbranded phrases. In case you are not seeing this, you could run a search time period report to seek out irrelevant key phrase phrases which may be comparable or misspellings to your model time period.
Evaluate the standard of your leads:
This may require in-depth communication together with your consumer, however ask your contact if they’re seeing high-quality conversions come by way of.
If it’s a lead gen account, ask if the leads you’re producing in search are changing to alternatives.
For additional strategic conversations, in case you are working on a number of platforms, attempt to get your consumer to match the conversion charges after a lead comes by way of towards one another. Do the leads that come by way of Fb have a decrease conversion to alternative? Do the leads from LinkedIn have a better conversion to alternative? These are next-level inquiries to ask as a result of chances are you’ll be keen to pay otherwise amongst platforms primarily based on the subsequent step within the lead life cycle to your consumer.
If it’s an e-comm consumer, ask if they’re seeing their common order worth enhance/lower. (You’ll probably be capable to see this data in Google Analytics if the accounts are arrange and linked correctly. You’ll want to constantly verify on the AOV in case you are seeing excessive CPAs or low ROAS).
Test to see in case you are sending extra visitors to your touchdown web page YoY or MoM. In case you are seeing better quantity (greater CTR) as time goes on, however your CVR is dropping, that is probably a touchdown web page situation. Relying in your relationship together with your consumer, advise them on how they’ll make the person’s journey easier and faster to extend CVR.
There may be probably one thing on the web page that’s stopping customers from changing. Is the shape too lengthy? Is the positioning laborious to navigate? Does the person need to click on a number of instances earlier than finishing the specified motion? Does the web page load slowly? All of those points are probably contributing to your excessive CPL.
Provide to run a touchdown web page take a look at. If there’s a shorter solution to get your person to transform, strive testing two completely different touchdown pages towards one another to see if one converts higher than one other (i.e. ship your person on to the shape vs a generic data web page).
Refresh advert copy:
How lengthy has it been because you reviewed and refreshed your advert copy? I prefer to arrange advertising and marketing calendars with my purchasers in order that we will preserve a pulse on how lengthy advert copy has been working. In case you are seeing a low CVR and a excessive CPL, your advert copy could also be in want of some tweaking.
There are a number of methods of diagnosing a excessive CPL, nonetheless, these are just a few fast and comparatively straightforward methods to determine why your prices are rising.