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Does cost per click affect cost per acquisition?
Cheap clicks can be expensive customers. Why we optimise for acquisition, not clicks.
Cost per acquisition is cost per click divided by conversion rate. Lower the CPC and CPA falls, but only if conversion holds.
Why cheap clicks mislead
Broad audiences and placements often bring cheaper clicks from people who were never going to buy. CPA rises even as CPC falls.
Where to look first
- Landing page speed and clarity, especially on mobile.
- Audience and keyword quality.
- Conversion tracking: are you measuring the right action?
Optimise for the outcome the business pays for. Clicks are only a step on the way.