You’re Tracking Conversions in A Budget-Constrained Campaign. if You Raise Cost-Per-Click (cpc) Bids Within the Budget Constraint, Which Result Is Most Likely?

You’re tracking conversions in a budget-constrained campaign. If you raise cost-per-click (CPC) bids within the budget constraint, which result is most likely?

  • Receive more conversions while paying less on average per conversion
  • Receive fewer conversions while paying more on average per conversion
  • Receive fewer conversions while paying less on average per conversion
  • Receive more conversions while paying more on average per conversion

Right Answer:

  • Receive fewer conversions while paying more on average per conversion

Explanation:

Above all of the terms in Online advertising, the most critical measurement you must need to understand and get to know about is Cost-per-Acquisition (CPA). Without any knowledge in CPA, you can’t get into advertising because there is a risk of overpaying for your customers that what they actually worth.

  • For anyone who is into Online Advertising, calculating the most effective CPA is core to any customer acquisition strategy.
  • CPA is generally defined as the marketing metric which measures the aggregate cost of the customer’s taking an action that leads to a conversion.
  • Cost Per Acquisition is also referred to as Cost Per Action.

When you are bidding any ad campaign in any of the Google Adwords or Analytics, Facebook or another ad network.

Along with this CPA, you also find CPM – Cost Per thousand Impressions, and CPC – Cost Per Click during the bidding.

CPA = Total Cost of Campaign/Number of Conversions

You should note that CPA can also be calculated for those companies which don’t even sell their goods directly. A Conversion can be a lead capture, demo signup, a click action or any of the indicators.

Do you got queries regarding this question You’re tracking conversions in a budget-constrained campaign…then do let us know by leaving a comment below.

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