Cost Per Conversion (CPC)

Definition of Cost Per Conversion (CPC)

The cost associated with acquiring a conversion, calculated by dividing total advertising cost by the number of conversions.

Explanation of Cost Per Conversion (CPC)

Cost Per Conversion (CPC) is a metric used in digital marketing to measure the cost associated with achieving a specific conversion, such as a purchase, sign-up, or download. This metric helps marketers understand how much they are spending to acquire each conversion, allowing them to evaluate the efficiency and effectiveness of their campaigns. For example, if a campaign costs $1,000 and results in 100 conversions, the CPC is $10. By tracking CPC, businesses can identify which marketing strategies are most cost-effective and make informed decisions about budget allocation. Lowering the CPC can lead to higher profitability and better ROI for marketing efforts. Marketers often optimize their campaigns to reduce CPC by improving targeting, refining ad creatives, and enhancing the user experience on their websites. Understanding and managing CPC is essential for maximizing the success of digital marketing initiatives.

This dictionary entry was written by

Per-Gulbrand Peter Braathen

With a foundation in doctoral-level research, Per-Gulbrand Peter Braathen is a seasoned expert in the areas of marketing, branding and communication. His proficiency extends to marketing management, branding and communication strategy. Braathen's experience is underscored by his rich background from various industries, including entertainment. A distinguished alumnus of the USC Marshall School of Business, Braathen boasts a Master of Science in Marketing, complemented by a Graduate Certificate in the Business of Entertainment from the USC School of Cinematic Arts as well as two undergraduate Bachelor degrees from the esteemed University of Southern California.