Knowledge Base

What is Cost Per Conversion & Why is it Useful?

Cost Per Conversion (CPC or CPCon), sometimes known as Cost Per Action (CPA), shows how much it actually costs to obtain a real customer who will make a successful conversion. A conversion could be making a purchase, signing up for something, or watching a video, depending on what the goal of the advertisement is. CPC represents how successful an ad is in achieving its goal based on the total cost of that ad.

The formula for Cost Per Conversion is:

Cost Per Conversion= Total Cost of Generating Traffic/Total Number of Conversions

For example, an ad campaign costs $50 for 50 views, and 5 conversions were generated. The Cost Per Conversion=$50/5 conversions, resulting in $10 per conversion. This is important to know so you can manage your budget and decide on the best ways to advertise. By increasing your conversion rate, you will lower your Cost Per Conversion.

This is not the same as Cost Per Click, which is also abbreviated CPC.

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