When you attend an interview for DV360 you must face this question in your interview. Including DV360, the strategy to reduce the CPA for your campaign on any DSP is similar. In this post, I have answered the above interview question elaborately. So, read this post very carefully and understand the strategy because it will help when you attempt to optimize your campaigns after you get placed. [DV360 Interview Questions and Answers]
Why should you optimize a CPA campaign?
You should optimize a CPA campaign to use your ad spend effectively. When your campaign’s CPA is low means your conversion is high. I will give you an example to understand this,
Your campaign’s overall spend is $1000 and your campaign has received 100 conversions. In that case, your campaign’s CPA is $10. That means your campaign has spent $10 on average to acquire one conversion.
CPA = Total Spend/Total Conversion
Let’s take it, you optimized and reduced the CPA for this campaign to $5. In that situation, how many conversions you received? 200 conversions.
Total Conversion = Total Spend/CPA
So, when you reduce your campaign’s CPA your campaign will get more conversions. So only you need to optimize your campaign to reduce the CPA.
How to reduce the CPA of your DV360 campaign?
In the digital advertising industry, most job vacancies are available for DV360. So, this answer will help you to answer in the DV360 Interview. Note that you can apply a similar strategy to any DSP.
Some DV360 campaign managers set a very low CPA goal in their campaign at the start. This is not the correct way. When you set a very low CPA at the start, your campaign will aim to reach that CPA goal. So, it will restrict the delivery and aim to acquire the conversions. Mostly, this kind of campaign ends up with under-delivery with low performance.
Whenever you start a performance campaign, you must set a reasonable goal (CPA). Once started, wait for one or two weeks to run. Suppose, your campaign is performing as you expected, you can slowly optimize your campaign to boost the performance.
If not, it’s very important to analyze the campaign performance and make the necessary optimizations to improve the performance.
Bid Optimization
Let’s take it, initially, you kept the CPA goal as $15 and your campaign’s current CPA is about $15 or more. Also, this campaign delivered more impressions than we required.
In that situation, your campaign has more opportunity for delivery. So, you can reduce the CPA goal slightly. For example, $12. When we change the CPA goal, it affects the current delivery pattern. So, suddenly do not reduce the more.
Creative Optimization
Many campaign managers ignore the creative part in their optimization. But, creatives play an important role in campaign performance. Creatives with compelling images and messages should help to bring more conversions.
In DV360, you can use the A/B testing feature to test and optimize the creative performance.
So, always focus on identifying and running the best creative that resonates best with your audience and brings more conversions.
Landing Page Optimization
Ad platform and all your strategies will help to bring audiences to the landing page. You have to optimize the landing pages to improve the conversion rate. For example, easy to navigate, places forms in the direct landing page, has less conversion journey, has good landing page speed, etc.
Site Optimization
To gain more conversions, you have to bring more users to your landing page. So, you have to improve the CTR. In your optimization part, run the site or app-level performance report and exclude the sites that have received low CTR.
I always start with site optimization when I tried to improve my campaigns performance.
Additional Optimization Tips
When you optimize your campaign, give time for optimizing. Then do the next optimization. Also, create more line items with different goals and targetings to identify the best targeting.
Use different creative variations and continue to run the best performing creative sets.
Conclusion
To reduce CPA for your campaign, you have to optimize your campaign at various levels. By implementing the above strategies and closely monitoring the campaign performance, you can reduce the CPA of your campaign from $50 to $10.
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