Cost Per Conversion (CPC)

Cost Per Conversion (CPC) measures the average amount spent to achieve a desired action, or conversion, from an advertising campaign. Conversions can include purchases, registrations, form submissions, or app downloads.

Formula

Example:

If a campaign costs $3,000 and generates 150 conversions, the CPC is $20.

Distinction between CPC and CPA: While often used interchangeably, CPC and CPA (Cost Per Acquisition) differ:

CPC: Focuses on the cost of any desired action.

CPA: Specifically measures the cost of acquiring a new customer.   

Effective Use: CPC helps evaluate campaign efficiency for various conversion goals, while CPA is more suited for customer acquisition metrics.