HELP! QUESTION! PPC CPA Formulas

4 replies
  • PPC/SEM
  • |
Hi,

As long as I've done PPC advertising I've used the formula: total spend/number of conversion to get my average CPA. Recently I've come across people using a different formula: average CPC/conversion rate to get CPA.

So my question is, which is the correct way to get CPA? Why do they both give different answers and what figure am I really getting when I use the different formulae.

Thanks
#cpa #formulas #ppc
  • Profile picture of the author davedemille
    The CPA is given by the CPA network. You can't really affect that unless you negotiate a better rate. You're probably referring to cost per conversion. In that case I use $ spent/# conversions
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  • Profile picture of the author helenfeona
    What is the difference between PPC & PTC ?
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    • Profile picture of the author jakobander
      Originally Posted by helenfeona View Post

      What is the difference between PPC & PTC ?
      PPC is pay per click
      PTC is a famous CAD company.
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    • Profile picture of the author davedemille
      Originally Posted by helenfeona View Post

      What is the difference between PPC & PTC ?
      PPC = pay per click. ex Facebook, Adwords, Bing, etc

      PTC = pay to click. People get paid to visit a website or click a link. I doubt there is anyway to get conversions with this method
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