CPA is the basis for such metrics as CPL and CPO

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rakib432
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Joined: Sat Dec 21, 2024 3:18 am

CPA is the basis for such metrics as CPL and CPO

Post by rakib432 »

CPA (Cost per Action) - the cost of a target action - how much a particular target action costs the advertiser.

For example, if a company attracted 200 visitors to its website, paying 300 rubles for it, and only 20 of them performed the target action, then the CPA was 15 rubles.

If the goals are set up correctly on the site, you can track accurate mobile phone number list their achievement, conversion, coefficient and cost of the target action in Google Analytics and Yandex.Metrica.


10.CPL (Cost per Lead) — the cost of obtaining user contact information.

For example, if a custom furniture manufacturing company paid 9,000 rubles to attract 2,500 visitors to its website, and only 85 people filled out the feedback form (order a call) with their contacts, then the CPL was 105 rubles.

At the same time, it is necessary to understand what percentage of leads are converted into the company's clients. You also need to separate the number of leads that you received thanks to contextual advertising from those that came through other channels.

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11. CPO (Cost per Order) — cost of the completed order.

For example, if an online store paid 1,200 rubles to attract 100 visitors, and only four of them placed an order, then the CPO is 300 rubles.

But there is another formula that allows you to calculate the cost of receiving an order in contextual advertising:

CPO=CPC/C1/C2,

where C1 is the first level conversion: from a website visitor to a lead (completed shopping cart, order for calculating the cost of services).

C2 — second-level conversion: from lead to client (payment for an order, signing a contract).

For example, CPC = 12 rubles, C1 = 2%, C2 = 55%, then CPO = 12/2%/55% = 1090 rubles.

This indicator must be correlated with the product margin. For example, if the margin = 1000 rubles, then the campaign with such conversion rates is practically working "in the minus".

12. AOV (Average Order Value) — the average value of an order on the site. Calculated by dividing the total income by the number of orders for a certain period of time. Allows you to adjust advertising costs and determines pricing — you can compare your average check with the market indicator or with the previous period.

13. ROI (Return On Investment) — the return on investment coefficient, reflecting the profitability of investments. It is expressed as a percentage and is determined by the formula:

To calculate profit from revenue, you need to subtract all the costs that the business incurs. If the ROI is 100%, it means that the investment has paid off and brought in a profit equal to the investment.

14. ROMI (Return on Marketing Investment) — the return on investment coefficient for marketing, evaluates the profitability of advertising. Expressed as a percentage. The formula is similar to ROI, with the difference that the income generated by advertising campaigns is used as profit, and the volume of the marketing budget is used as expenses.

Let's also look at the indicators of repeat visits and sales
15. Return Visitor Ratio — shows how many people returned to the site. Allows you to assess the interest in the site from users — the higher the percentage of returns, the better. Calculated by dividing the number of repeat visits by the total number of visitors.

16. Cost of a target call . All of the above indicators are very important and necessary metrics in the arsenal of any marketer. Clicks give an approximate understanding of where visitors to the site come from, banner views - the potential reach of those who saw your ad. But how to figure out which channel really brings customers ready to buy? After all, assessing the effectiveness of online advertising is impossible without answering this question.

This is where call tracking comes to the rescue. This technology allows you to see from which advertising channels calls are coming, to understand where you should cut costs, and where, on the contrary, increase them to increase ROI. One of the most important features of call tracking is the ability to find out which keywords bring more calls, and therefore, bring profit.
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