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Calls counted as Conversions/Acquisitions (Leads/Sales)

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

What is the cost of acquisition ? I can't understand it and what is the difference to CPC

1 Expert replyverified_user

Re: Calls counted as Conversions/Acquisitions (Leads/Sales)

Google Employee
# 2
Google Employee

Hi Ola M,

 

I think you're asking about the cost per acquisition (CPA) bidding option? 

 

Cost per acquisition bidding lets you tell AdWords the amount you're willing to pay for a conversion. It predicts which clicks are likely to lead to a conversion and automatically sets your bid to try to get you as many conversions as possible. It's different to cost per click (CPC) bidding where you set a maximum price on the cost of someone clicking on your AdWords ads. CPC bidding is focused on generating as many relevant clicks as possible, CPA bidding is focused on generating as many conversions as possible.

 

I hope this helps!  

Re: Calls counted as Conversions/Acquisitions (Leads/Sales)

Follower ✭ ✭ ☆
# 3
Follower ✭ ✭ ☆
Hi Ola M,
If you are asking this in terms of calls as conversion, cost/converted clicks is your cost of acquisition. After setting your call extensions for calls to be counted as conversions, whenever there is a click on your call extension through mobile device, Google counts it as a conversion if the call lasts for more than the specified time duration. CPC and cost of acquisition will be different since for the latter converted clicks are used for the calculation.


Thanks
Abhishek

Re: Calls counted as Conversions/Acquisitions (Leads/Sales)

Explorer ✭ ✭ ☆
# 4
Explorer ✭ ✭ ☆

CPA:- the advertisers are paying for each time a user takes a specific action because of the ad. This action could be anything a newsletter sign-up, to a purchase (hence “cost per acquisition”).

In Simple way "Cost per acquisition" is how much cost you have spent to get one Acquisition/sale For example you have spend $10 and get 1 conversion then your cpa is $10.

Formula is acquisition = spend/acquisition

CPC (Cost for one click):-if you purchase ads at a $5 CPC, with a $1,000 budget, then you are expecting to get 200 clicks throughout the course of your advertising campaign.(or When a user click on your ads then their is certain amount which you have to pay to google.)
Formula :-Cost/click