Why Measuring Cost Per Acquisition For Car Dealers Is Very Important

CPA Analysis

CPA (Cost per Acquisition) is one of the most important indicators to measure when optimizing paid search performance and spend efficiency. This metric will help you and the team decides how to throttle bid adjustments to achieve conversion goals and yield success as they pertain to the business KPIs.

CPA analysis is a very flexible analysis and can be calculated and analyzed in conjunction with a slew of segments within your Google Ads account. This includes calculating CPA at the campaign, ad group, keyword, demographic, and geo level.

CPA = Cost/Conversions

Example of Paid Search CPA Performance Month over Month:

CPA and conversions month over month

Why understanding your CPA is so important

Understanding your cost per acquisition/conversion is key to diving deeper with your overall campaign efficiency and ROI.

Advertisers who are not keeping attention to their CPA tend to overpay for keywords that may underperform or are irrelevant to their campaign objective.

Making sure you have a clear month over month analysis of CPA will help you better measure the success of both the campaign and overall account efficiency.

Here are other ways you can measure CPA:

1. CPA by search keywords

2. CPA by paid and organic traffic

3. CPA by ad groups

4. CPA by location bidding

All of the additional breakdowns by cost per acquisition will help further reveal account opportunities that will lead to better overall budget and campaign management.

Want to learn how to conduct CPA Analysis for your google ads account? Schedule a time with me