When your cost per acquisition is too high, profitability suffers. AI identifies exactly why your CPA is elevated and what to do about it.
$2,000-$10,000+ per month in excess costs
CPA, ROAS, Profit Margin, Budget Efficiency, Volume
High CPA directly erodes profit margins. A $100 CPA with $80 margins means you're losing $20 per customer. Even a $120 CPA with $150 margins means 80% of your revenue goes to acquisition.
Understanding the root causes is the first step to solving the problem.
Broad audiences and keywords drive volume but often at the cost of relevance. You're paying for clicks from people unlikely to convert.
Poor Quality Scores directly increase your CPC. A QS of 5 can cost 50-100% more per click than a QS of 8.
Traffic quality might be fine, but if your landing page doesn't convert, you're paying for clicks that don't become customers.
The wrong bidding approach for your goals - or poorly set targets - can drive up costs without corresponding improvements.
Well-intentioned fixes that often make things worse.
Reducing budget doesn't improve efficiency. You just get fewer conversions at the same high cost. The underlying issues persist.
Broad targeting drives volume but kills efficiency. Profitable growth requires balancing reach with relevance.
QS improvements are the most leverage-able way to reduce CPA. Fixing relevance issues can cut CPC by 20-50%.
Purpose-built features to detect, diagnose, and fix high cost per acquisition.
See exactly which campaigns, ad groups, and keywords have elevated CPA, with AI analysis of likely causes.
Identify QS issues and get specific recommendations to improve each component (Expected CTR, Ad Relevance, Landing Page).
AI identifies targeting adjustments that can improve efficiency - geographic, demographic, and keyword refinements.
Recommendations for bidding approach and target adjustments based on your specific data patterns.
Best practices to prevent this problem from occurring or recurring.
Good CPA depends on your unit economics, not industry benchmarks. If you sell a $500 product with $200 margins, a $150 CPA is profitable. If you sell a $50 product with $20 margins, $150 CPA is a disaster. Start by calculating your maximum profitable CPA: sale price minus COGS minus desired profit margin. Then factor in customer lifetime value if repeat purchases are common. PerfoAds helps you set realistic CPA targets based on your actual business economics, not generic industry averages.
PerfoAds AI identifies, diagnoses, and helps you fix account issues automatically. Start solving problems today.