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Chapter 14. Before You Start Advertising... > Set a Customer Acquisition Cost Goal

Set a Customer Acquisition Cost Goal

Search engine advertising attracts new customers. However, it increases your sales to a limited extent. That's because a finite number of people seek your product or service. If there are 10,000 searches for “home aquarium tanks,” you can't make additional people perform searches for that phrase. If you buy this phrase, your text link can only appear a maximum of 10,000 times, and no more. The good news is that you can work to lower your customer acquisition cost, which can significantly increase your overall ROI. Setting CPA goals helps you accomplish three main tasks:

  • Immediately identify and delete (or modify) the search engines, products, and campaign components that are weakening your overall ROI.

  • Forecast potential ROI before you launch a new search engine ad campaign.

  • Negotiate CPA deals for Fixed Placement search engine programs or other Internet marketing campaigns.


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