Using data-driven analysis to beat rising cost per acquisition

Using data-driven analysis to beat rising cost per acquisition

For many businesses sustainable Cost Per Acquisition (CPA) is paramount. However, the current digital climate is forcing CPA to increase. With CPA rising, customer lifetime value declining, and growing marketing costs, optimizing spend is an increasingly important part of modern marketing. In order to reduce CPA marketers should use data-driven analysis to reduce spend whilst increasing their number of conversions. An integral part of Fospha’s ethos is helping our clients to use data insights to accurately understand the value and impact of individual marketing channels.

What is CPA and why is it important to marketers?

Where most marketing measurement is intended to reflect performance of different channels, CPA directly measures the financial impact of marketing campaigns. CPA is the amount of marketing or advertising money that businesses spend to convert or acquire leads (total campaign costs divided by the number of conversions). Although many marketers focus on increasing traffic or sales, optimizing cost is far easier than increasing conversions and can improve return on investment (ROI) without further spending.

At Fospha we assist our clients in reducing their CPA by helping them to optimize their digital strategy – eliminating wasted spend and reallocating it across channels with the highest rate of performance.


  1.   Keyword optimization

By identifying high and low-performance keywords, marketers can reduce wasted keyword spend and reallocate their budget across the most profitable keywords, optimizing ROI and reducing CPA.Using Fospha’s Zero Performance Media tool, our clients can access business intelligence reports which highlight how each keyword contributes towards impressions, click-throughs and more importantly, sales. Our keyword budget planner then maps out how to reallocate spend to maximise conversions.


  1.    Multi-touch attribution (MTA)

With consumer journeys increasing in complexity, and the range of marketing channels continuing to grow, understanding the performance of each individual marketing channel and using these insights to build an agile marketing strategy is more important than ever.

Our advanced multi-touch attribution model makes it easy for marketers to gain accurate insights into the performance of individual marketing channels. The model identifies high and low-performing channels using data-driven algorithms, helping marketers to reallocate spend across those which contributed most to conversion. Effective use of MTA can help businesses to increase conversions and maximize ROI without increasing marketing spend.


3. Targeting high value customers

With customer acquisition costs continuing to rise, companies have to maximize Customer Lifetime Value (CLTV), to increase the amount of profit each customer will deliver a business throughout their lifetime. To reduce CPA and increase CLTV, Fospha recommend identifying existing high-value customers, profiling them and then using this data to target similar high-value individuals.

Fospha’s Customer ROI tool stitches customer, revenue and spend data together to show exactly how much each prospective customer will cost to convert, making it simple to visualize who your high-value customers are. From this, marketers can extract the data for their highest value customers and fine tune their targeting strategy – thereby decreasing CPA and increasing ROI, by targeting people who are similar to their high-value customers.


For one of our clients’, AVADO, Fospha found:

  • 32% of budget was being spent on words that played no role in historic or forecasted conversion.
  • 20% of keywords were under invested in, they played a role in conversion but they were not recognized by last-click model

Unlocking these insights saved AVADO £200,000 in AdWords spend with Fospha solutions yielding a 30% increase in return on investment (ROI).

An in-depth understanding of their most profitable consumers helps businesses not only to hone their own marketing strategy, building personalized customer experiences, but also helps marketers to target consumers with similar interests and behaviours – reducing their CPA.

For more information on how your business can reduce cost per acquisition, get in touch at: or visit our website

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