Why Landing Page Optimization is Critical to Low Paid Acquisition Costs
Landing page optimization is the act of systematically improving the percentage of users visiting the landing page that take the primary call to action (typically, filling out a form). The process typically involves doing user research followed by AB testing different variations of the page based on hypotheses you generate from the user research.
While most B2B companies know the importance of AB testing ad copy and creative, it’s shocking how few have a dedicated process in place to AB test their paid media landing pages with the same rigor.
But paid media landing page conversion rates are extremely important to achieving the all important low cost per acquisition (CPA).
In fact, your landing page conversion rate actually has a mathematically equal effect on cost of acquisition metrics as ad click-through rates. So, before we dive into the strategy and tactics of landing page conversion rate optimization (CRO), we want to walk through the financial impact of improving landing page conversion rates.
This will help motivate the rest of the guide as well as help you sell the importance of implementing a rigorous CRO process for paid media landing pages to company founders and management.
Financial Impact of Landing Page Conversion Rate
Let’s start with an example. A typical B2B paid media campaign has three steps that the prospective customer should take:
Step 1: See the ad
Step 2: Click the ad (view the landing page)
Step 3: Fill a form on the landing page
The conversion rate between Steps 2 and 3 is, of course, what we’re interested in here, that’s the landing page conversion rate: How many visitors to the landing page ll the form and become a lead.
Most B2B companies use the metric cost per lead (CPL) to measure the effectiveness of this process. Let’s see how a range of different landing page conversion rates affect CPL:
To make the math simple, we’re supposing you spend $100 for 100 clicks ($1 CPC). If the landing page converts 5% of those clicks to leads, the company will acquire 5 leads, thus the CPL will be $20. At 10%, the CPL reduces to $10, and at 20% the CPL reduces to $5.
So, the landing page conversion rate has an inverse linear relationship to CPL. That means, double the conversion rate, and your CPL is halved.
This is the exact same as increasing your paid ad CTR.
If you’re paying a fixed cost per thousand ad impressions (CPM) and you double the click through rate, your CPC will be halved — just like doubling your landing page conversion rate. And, of course, paying half for per click means you also pay half per lead (if all else stays the same).
So B2B companies should spend just as much effort on increasing their landing page conversion rates as they do on increasing their ad CTRs.
Landing Page Optimization is More Complex But Has Great Utility
Landing pages, though, have a lot more content in them than ads, and unlike ads you have nearly in nite freedom on what to put on the landing page (quality score and other regulations notwithstanding):
● You can make your page long or short.
● You can ad images or remove them.
● You can place the form wherever you want.
● You can make the form longer or shorter.
● And many more
It’s your page, you control all details, big or small.
This means you have to be more careful when optimizing landing pages. Because there’s so much you could do, it’s easy to waste time on irrelevant changes. You have to know which aspects of the page will likely have the greatest impact.
This is exactly what this guide will help with. You’ll learn best practices and areas of high impact on your landing page so you optimize efficiently.
Finally, there are some side benefits of landing page optimization beyond just reducing CPA (as if that’s not amazing by itself).
Namely, elements of “winning” landing pages (those that convert better as proven in AB tests) can be used in other parts of your marketing site and other marketing collateral. As we’ll learn below, a winning element in a landing page test doesn’t ensure it’ll also convert better on, say, the marketing site’s homepage, but it’s a great place to start.
Landing Page Optimization Strategy: User Research
We’re going to discuss the tactics of how to improve landing page conversion rates by testing value propositions, benefits versus features, long versus short explanations and more. But when implementing any of those tactics as AB tests, in our experience:
You will create more winning variations the better you understand the pains and desires of your users.
Here, walk through a case study to show this principle in action, then outline three user research tactics we’ve found are most useful for B2B companies.
To download the rest of this guide as a PDF ebook, including this table of contents, click here (no email required):
If you’d like to talk to us about doing an audit of your landing pages or optimizing and AB testing your landing pages, fill out this form and we’ll be in touch with you:
Improve PPC Metrics As Well
Finally, we partnered with Growth Pilots, a paid acquisition firm based in San Francisco to put together this guide and their partner guide on paid acquisition. Ours covers landing page optimization, whereas theirs covers (in amazing detail) optimizing paid acquisition campaigns for B2B lead generation. You can get their guide here.