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Calculating Cost Per Conversion

by mootonandy
5 replies
  • PPC/SEM
    • |
Hi,

I am stuck on how to calculate cost per conversion.

Say I spent $26 for 100 clicks, and I had a conversion rate of 6% then how do I calculate the cost per conversion?

I think I know but I can't prove it to myself.

Pleas tell me.

Thanks.
#calculating #conversion #cost
  • Profile picture of the author AdWordsUzmani
    Spent / Conversions.

    If you spent $26 and you had 6 conversions, its means $26/6 = $4.3 per conversion.
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    • Profile picture of the author mootonandy
      Originally Posted by AdWordsUzmani View Post

      Spent / Conversions.

      If you spent $26 and you had 6 conversions, its means $26/6 = $4.3 per conversion.
      Hi, thanks, but I did not say 6 conversions, I said a conversion rate of 6%.
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      • Profile picture of the author dburk
        Originally Posted by mootonandy View Post

        Hi, thanks, but I did not say 6 conversions, I said a conversion rate of 6%.
        Hi mootonandy,

        I think he knew that, but since you did not mention the actual number of conversions your got, he just used 6 as an example.

        The formula is as follows:

        CPA = Cost/Number of Conversions

        Most ad platforms will have a column that shows the actual CPA (Cost Per Acquisition), you don't even have to calculate it yourself.
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  • Profile picture of the author LucidWebMarketing
    You said 100 clicks for $26 and a 6% conversion rate. Therefore you had six conversions in those 100 clicks. $26 spent / 6 conversions = $4.33 per conversion.
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    Profitable PPC Campaigns Don't Happen By Accident
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    • Profile picture of the author mootonandy
      Originally Posted by AdWordsUzmani View Post

      Spent / Conversions.

      If you spent $26 and you had 6 conversions, its means $26/6 = $4.3 per conversion.
      Yeah, u r both correct, thanks so much for your help!!!
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