Why count conversion?
Posted: Tue Jan 21, 2025 9:22 am
1) To understand which traffic source is most effective for you. For example, algeria whatsapp number database if the conversion to an application or purchase from contextual advertising is higher than from social networks, distribute the promotion budgets so as to invest more in the conversion source.
2) To plan budgets for contextual advertising. If you know the conversion of your site, you will understand how many users you need to attract, what budget to allocate for this and what price per click to indicate.
Example:
Website conversion = 5%
The goal of the advertising campaign is to get 10 applications. The maximum you are willing to pay for one application is 300 rubles. In total, you have 10 * 300 = 3000 rubles for promotion.
To get 10 applications with a site conversion of 5%, you need to attract 10/0.05 = 200 visitors. The cost of one visitor / average click price should not be more than 3000/200 = 15 rubles.
CAC (Customer Acquisition Cost) — Cost of attracting a client
Customer Acquisition Cost
How to Calculate Customer Acquisition Cost
Customer acquisition cost is the sum of all costs to convince a customer to buy your product.
Unfortunately, not everyone who expresses interest in a product ends up becoming a paying customer. To calculate how much one paying customer costs you over a period, divide your customer acquisition marketing costs over the period by the number of customers acquired.
2) To plan budgets for contextual advertising. If you know the conversion of your site, you will understand how many users you need to attract, what budget to allocate for this and what price per click to indicate.
Example:
Website conversion = 5%
The goal of the advertising campaign is to get 10 applications. The maximum you are willing to pay for one application is 300 rubles. In total, you have 10 * 300 = 3000 rubles for promotion.
To get 10 applications with a site conversion of 5%, you need to attract 10/0.05 = 200 visitors. The cost of one visitor / average click price should not be more than 3000/200 = 15 rubles.
CAC (Customer Acquisition Cost) — Cost of attracting a client
Customer Acquisition Cost
How to Calculate Customer Acquisition Cost
Customer acquisition cost is the sum of all costs to convince a customer to buy your product.
Unfortunately, not everyone who expresses interest in a product ends up becoming a paying customer. To calculate how much one paying customer costs you over a period, divide your customer acquisition marketing costs over the period by the number of customers acquired.