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Leverage Cost Per Click (CPC) to maximize return at desired Cost of Sale (COS)%
Increasing CPC causes:
CPO is the Cost for Clothes.com to get 1 Order
CPO = Cost of Campaign/# of Conversions
CPO = ↑CPC / CR
Only metric we can impact --> Cost Per Click (CPC)
More Conversions!
More Clicks
More Impressions
More Effective Campaigns
&
More Competitive Ad Placement
Increase CPC
Increases eCPM
&
Increases CPO
COS --> Measure of Effectiveness | Goal→ COS < 10%
COS = (Cost of Campaign / Revenue Generated)*100
COS = (Clicks x CPC) / (Sales(PC) x AOV)*100
COS --> A proportion of Cost and Revenue
CR: Show an ad to a segment and x% of the time people will purchase
Conversion Rate = (Sales PC / Clicks)*100
Returning Customers (Lower Funnel)
New Visitors (Customer Acquisition)
Result Similarities to Other Advertisers in Vertical?
Highest COS --> Customer Acquisition (149.5%)
CPC Segment Recommendations to Align with COS Goal of 10%
Results in Total: