Cost per profitable acquisition is the metric to measure for digital

December 3, 2020

CPPA: It’s not a typo! Cost per profitable acquisition is the metric to measure

Online advertisers need to consider the value of campaign targeting and which metrics best measure campaign success

CHALLENGE:

Cost per acquisition (CPA) is a common measure to evaluate online campaigns, but may not be effective

CPA does not distinguish between profitable customers and those that may be costing more to service than the revenue they provide

Online marketers may be more concerned with CPA then who they are targeting to begin with

SOLUTION: 

Improve upfront targeting and use cost per profitable acquisition (CPPA) metrics to better measure campaign results 

ENHANCE TARGETING: Online advertisers can target households that have similar financial and economic profiles
as current best customers in their online efforts in order to better reach households that are likely to be profitable.

EVALUATE ACQUISITION PROFITABILITY: Then, campaigns can be evaluated by CPPA to show that the cost of online targeting is outweighed by percent of messages that reach
the desired target audience and the conversions in the target segment.

EXPECTED RESULTS: Enhance targeting and reduce campaign CPPA by over 50%

A sample analysis using WealthComplete® to TARGET VISITORS LIKELY TO HAVE OVER $100,000 IN ASSETS vs. an untargeted group showed:

CPA for the targeted group was double that of the untargeted group, but this does not reveal the cost of acquiring profitable customers

CPPA for the targeted group was half that of the untargeted group

For more information click here.

Results may vary based on actual data and situation.

  • The percent of messages reaching the targeted group was 4x higher than the untargeted group

  • There were double the conversions in the target segment

 
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