Cost-per-conversion (CPCV) is a KPI that measures the total cost of an advertising campaign against the number of conversions resulting from that campaign. Here, “conversions” mean the number of people who did what you wanted them to do when following a specific call-to-action.
Let’s say you have a Facebook Ad campaign and the main goal of that campaign is to get people to visit your website.
First, you spend some money so your ad will be viewed (cost-per-view, CPV). Then, these views lead to clicks, and you spend more money for each click (cost-per-click, CPC). Finally, some of those clicks lead to conversions (i.e., people visiting your website).
The calculation for cost-per-conversion is hence:
The average CPCV across all industries is $48.96 for search and $75.51 for display, according to WordStream.
CPCV is one of the easiest and most effective ways to determine if your ads are working. If your CPCV is too high, it could mean you have the wrong keywords, visuals, target audience, or channel. This is why it’s important to have a marketing attribution dashboard that lets you see super granular data as well as essential KPIs.
There are many costs involved with a specific digital ad, such as impression costs, CPC, and total CPV. Tracking the average CPCV for your marketing campaigns remain an important metric so you know not only how much you’re earning from an ad, but also if you’re earning enough to cover all related costs.
Tracking your campaign’s CPCV on Adriel’s dashboards is important as it gives you information on not only how much you’re earning from an ad, but also if you’re earning enough to cover all related costs.
To see what it’s like to measure and analyze campaign performance with absolute ease, head on over to your workspace on Adriel and play around with intelligent dashboards powered by cutting-edge ad operations technology.