Where is Cost Per Acquisition Used?
Cost per acquisition is typically used in the following paid marketing mediums:
Pay Per Click (PPC)
Pay Per Click (PPC) is a type of search marketing in which advertisers utilize the Google Ads platform (and other platforms) to target users in search engines. PPC agencies tend to provide a range of services across other platforms such as Facebook, LinkedIn and more.
The goal of PPC is to generate as many conversions as possible at the lowest possible cost. This would be represented by a low cost per acquisition.
Display Advertising is a type of online marketing in which advertisers advertise with banner ads that appear in designated areas of a website or other social platforms.
The goal of display advertising is to strategically place banner ads on websites or platforms that generate users within your target audience, ultimately converting a higher rate at a lower cost (lowering your cost per acquisition).
Affiliate Marketing is a marketing strategy where a person or a company can make money by promoting one another’s products or services.
The goal of affiliate marketing is to promote your products or services on a site brings in your targeted audience through search or a following (such as Instagram influencers). This way you are minimizing your cost per acquisition through targeting promotion.
Social Media Marketing
Social media marketing is simply marketing across social media platforms such as Facebook, Instagram, and Twitter.
The goal of social media marketing is to maximize your reach to as many users as possible. These platforms are also used for paid social campaigns, where minimizing cost per acquisition is extremely important to maximizing social media marketing and customer acquisition efficiency.
Content marketing is a type of marketing that involves strategizing, creating, and sharing content across multiple channels.
The goal for content marketing is to either promote the content on platforms such as Google or LinkedIn and generate conversions with a low cost per acquisition, or implement SEO and generate conversions organically.
In addition to these, cost per acquisition can also be used for e-commerce SEO, email, and other campaign platforms without direct advertising costs but that still need overhead (i.e. indirect expenses and labor).