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What is the best cost per conversion?

Follower ✭ ☆ ☆
# 1
Follower ✭ ☆ ☆

It always bugs me what can be the best possible cost per conversion value? Do we have any industrial numbers for it to say you are having best cost per conversion?

1 Expert replyverified_user

Re: What is the best cost per conversion?

Explorer ✭ ☆ ☆
# 2
Explorer ✭ ☆ ☆
Hi Lakkaraju,

Interesting question I think what it comes down to is the location and industry. I work with a few dental clients in NC and one had a few months with a cost per conversion of $14, but then I work with a few other dental clients in NY and their cost per conversion was almost twice as much. Take into account the population of searchers in these areas.

Also if it is a local business or a national business the cost per conversion will likely be lower for local clients given that they can take advantage of location extensions. I haven't come across any articles online about the best cost per conversion, but it would be nice to know for some of the industries I work in.

Maybe someone else has some better insight on this. Is there a specific industry you are interested in?
Best,

Stefan Martinez
-- Not an AdWords expert, just a student eager to learn more...

Re: What is the best cost per conversion?

Follower ✭ ☆ ☆
# 3
Follower ✭ ☆ ☆
Stephan,
Thank you for sharing the information.

Santhosh.

Re: What is the best cost per conversion?

Explorer ✭ ✭ ☆
# 4
Explorer ✭ ✭ ☆
Hi,
It purely depends on your profit earned from your sales thru Adwords.

You are the best person to measure if you have the best cost per conversion for your Adwords campaign. If you are getting good Return On Investments for the spend on Adwords Campaigns, then you are running a better campaign. Now start focusing on achieving even better profit by tuning your Campaign (better keywords combination for the keywords with some conversions, more ad variations for better CTR to acquire more relevant visitors from same keywords).

Regards,
Balu.

Re: What is the best cost per conversion?

Top Contributor
# 5
Top Contributor

Hi lakkaraju, as Balu has said, there really is no industry standard or best possible cost per conversion because it depends upon the value of the conversion itself.  If I sell a product that returns a net profit of $15 then a $5 cost per conversion might be acceptable, if my products sell at a net of $5000 then a cost per conversion of $3000 might be acceptable.

 

When comparing costs per conversion it's usually better to talk in terms of the conversion value per cost figure which tells you a form of Return on Advertising Spend (ROAS).  So, for example, a conv. value/cost figure of 3.9 means you receive $3.9 for every $1 you spend.  This figure makes more sense when comparing between Accounts as it's independent of the actual values.

 

The column for conversion value/cost is not active by default in AdWords so you'll need to customise your columns to display it, but it's very useful as it's a good overall guide to the health of your advertising.

 

Jon

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