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Post by account_disabled on Feb 18, 2024 6:59:40 GMT -3
This metric is used to evaluate the campaign's cost-per-conversion effectiveness and is especially important for conversion-focused campaigns. Calculation Method: CPC is calculated by dividing the total ad spend by the total number of conversions. Formula: Total spend/Total Conversions Importance: CPC shows how much a campaign costs for each conversion. A low CPC indicates more conversions for less cost,
Which is positive from a cost-effectiveness latestdatabase.com perspective. CPC Example: An online education platform is running a digital advertising campaign to promote a new course series. Campaign details are as follows: Total Spending: $5,000. Total Number of Conversions (Course Registration): 250 Registrations. Registration=$20/Registration In this example, the education platform estimates that the training platform generates.
Conversions at an average cost of $20 for each course registration. This cost may vary depending on the level of competition for the campaign's keywords, the targeted audience, and the overall appeal of the ad. If the platform calculates that the average revenue from each registration is over $20, then the campaign can be considered cost effective. CPC allows advertisers to understand how much their campaigns cost per conversion, and is an important metric for budget allocation, targeting and ad content optimization.
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