What is CPO in advertising (digital marketing)? What does it indicate and how to calculate CPO (cost per order)?
To be sure that the cost of selling goods or services is repaid it is necessary to calculate the CPO.
CPO (cost per order) indicates how much the advertiser has paid for selling one unit of the product. In PPC advertising, this indicator of efficiency is calculated by the formula:
C1 — the first conversion level: the visitor of your website is converted into a lead (takes some action on your website)
C2 — the level of the second conversion: lead is converted into a client (makes a purchase).
CPC — is the cost of purchasing goods. This indicator is responsible for the performance of your advertising. To calculate it, you need to divide the advertising campaign budget by the number of orders/purchases of the offer that you are advertising.