Cost-per-lead or CPL is a metric that is often scrutinized by digital marketers. Simply put, the CPL tracks how much a marketing campaign spends to earn one conversion. If the CPL is higher than the revenue gained through the conversion or at a level that minimizes your profit margin, it may be worthwhile to lower your CPL. But, how exactly does one lower their CPL? Here are several helpful tips to lower your CPL and maximize your revenue.
Audit Your Ads
The best way to lower your CPL is to routinely monitor your ads. Analyze which ones are the most successful and compare them to the ads that are unsuccessful. You may find that a particular call-to-action text is not very enticing, or that a particular image is too confusing. It’s also helpful to examine your landing pages as well to see if the landing page text needs a tweak or if the page lacks proper UI/UX. Make sure your keywords are in your ad text as well in order to reach an optimal audience.
Try Out An AI System
Artificial intelligence is rapidly becoming commonplace in advertising. Automated bidding programs adjust real time to price and demand for certain products and services. These programs can help keep CPL low while ensuring that a maximum amount of potential clients are reached. You can A/B test automated bidding by running 50% of your campaign thorough AI and manually controlling the other 50%
Analyze Your Campaigns By Device
Potential clients view ads on tablets, phones, and computers. What may work on one device may actually be quite ineffective on another. In order to hit your optimal CPL level, you should monitor which ads work on each device. If spot an ad that does not lead to conversions on mobile but has been successful on computer, it would be best to remove the ad from mobile. Some ads may also generate leads but at a CPL level that is far too high for your business, keep this in mind as well.
Utilize a Remarketing Campaign
A remarketing campaign is a type of marketing campaign in which non-converting leads are retargeted. The marketing campaign should be at the low end of your budget as these leads are quite cold. If any leads arise from your remarketing campaign, they will incur a low CPL due to the low amount of money spent on them. Remarketing campaigns should remind the prospective consumer what they are missing out on without being overly pushy. You can also ask your leads to complete a survey to ascertain why the prospect decided not to convert in the first place.
Run Negative Keywords
Negative keywords are those that you do not wish to rank for in your marketing campaign. By utilizing negative keywords, you can bring more qualified leads to your site, boosting the chance of a conversion. For instance, if you sell tennis shoes, you may run a negative keyword on the phrase “basketball shoes” to exclude potential leads that are in the market for basketball shoes. This removes unqualified leads from clicking on your ads and raising your PPC. Make sure to analyze your negative keywords each year to make sure you are not potentially excluding a keyword that may bring qualified traffic to your site.
Analyze Your Campaign By Hour and Day
Analyzing your marketing campaign involves more than just measuring the efficacy of your keywords. By analyzing how well your campaign performs on an hourly and daily basis, you can ascertain when to raise the bids for marketing campaign and when to lower them. You may find that you obtain more leads in the afternoon than in the morning or that you do not see any leads over the weekend. You should lower your bids on days and hours when your campaign is least likely to convert so that your CPL stays low.
Analyze Which Geographic Areas Convert The Most
Ad managers should also examine which geographic areas are more likely to convert than others. By doing so, they can determine areas that should not be advertised to. If your campaigns bring little to no leads from the state of Idaho, it’s best to utilize that marketing budget in a higher converting state. You may also find areas that convert but at a higher CPL than you would like.