How To Lower CPA Strategically In Your Account

Often media buyers or clients complain about high CPA in their accounts.

They say that they tried everything but their CPA just can’t go where their KPI is.

And usually, their KPI is not a good representation of the performance in their FB Ad account. 

Some clients who don’t know a lot about the FB game now, want the same results as 1 or 2 years ago.

Yeah right… Mission impossible if they don’t work on a higher AOV (average order value) as a mission #1.

Then when I do the analyses of their accounts, I see that there is 80% of their campaigns active above the KPI they should follow.

Sometimes all you need to do is to lower the average CPA you are following when you are optimizing all your campaigns.

If your target CPA is $20 and CPA 3, then you can’t have 80% of campaigns open with an average CPA of $25.

You need to kill all campaigns that in the last 7 or 14 days are above $20.

And launch new ones with the best creatives you can get.

I try to set up 2 different KPIs in my client’s account.

One I always follow when I optimize my prospecting campaigns, and the other is just for retargeting.

So if the overall KPI that the client gives me is $20 CPA, then I know I need prospecting campaigns to optimize on average at $25.

My retargeting campaigns then need to work from $15-18. If possible even lower.

If my prospecting vs retargeting ratio is 70:30, then I know exactly how many campaigns I need at a certain spend per day, to feed this ratio.

And my average CPA when you look both together is $20, then I also know how much I can push TOFs if BOF+MOF are performing at a certain CPA.

At the end of the day, it is all about calculations.

What is CPC, what is a conversion on the landing page, and what is CPA?

Based on that I can plan how many campaigns, what spend, and what revenue we can expect.

When you look at this more in-depth, you will see that all you need to do daily is to control the average cost per purchase or ROI based on the KPI you set up.

And kill campaigns as quickly as you launch new ones!

By this, I mean daily. Or at least every 2 days.

If you are struggling with CPA.

Calculate your CPA and then test, test, and test.

At the end of the day, 80 will fail but 20 will work.

So work on the 20 that is near your target KPI for cold and warm traffic.

Simple as that. 🙂

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