How Performance Marketing Works

Cost Per Click (CPC)

CPC is calculated by dividing the total cost of the advertising campaign by the number of clicks received. The formula for CPC is:

CPC = Total Cost / Number of Clicks

Cost Per Impression (CPM)

CPM is calculated by dividing the total cost of an advertising campaign by the number of impressions generated, and then multiplying the result by 1,000. The formula for CPM is as follows:

CPM = (Total Cost / Number of Impressions) * 1000

Cost Per Sales (CPS)

To calculate the Cost Per Sale, you need to divide the total cost of sales and marketing activities by the number of sales generated during a specific period. The formula for calculating CPS is as follows:

CPS = Total Cost of Sales / Number of Sales

Cost Per Leads (CPL)

CPL is calculated by dividing the total cost of a marketing campaign or initiative by the number of leads generated during that campaign. The formula for calculating CPL is as follows:

CPL = Total Campaign Cost / Number of Leads

Cost Per Acquisition (CPA)

Cost Per Acquisition (CPA) is a marketing metric that measures the average cost incurred to acquire a new customer or lead. It is commonly used in online advertising campaigns and is calculated by dividing the total cost of acquiring customers by the number of conversions or acquisitions.The formula for calculating CPA is as follows:

CPA = Total Cost / Number of Conversions