Cost Per Conversion is a key metric used in digital advertising to measure the cost associated with each conversion achieved through your advertising campaign. A conversion refers to any specific action that you deem valuable, such as a purchase, a signup for a newsletter, a download, or completing a form.
To calculate Cost Per Conversion, divide the total cost of your advertising campaign by the number of conversions it generated. This metric helps advertisers understand how much they are spending to acquire each conversion, providing insights into the efficiency and effectiveness of the campaign. It's a vital tool for managing advertising budgets, optimizing campaign strategies, and ensuring that spending aligns with business objectives to maximize ROI.