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Ad Cost Per Goal Conversion

What is Ad Cost Per Goal Conversion?

Ad Cost per Goal Conversion is the amount of money spent on an ad that leads to a goal conversion. It is used to measure the investment in a single advertisement required to achieve a set goal.

Alternate names: Cost Per Action (CPA), Ad Spend Per Conversion

How to calculate Ad Cost Per Goal Conversion

ƒ Sum(Ad Costs) / Count(Goal Conversions)

What is a good Ad Cost Per Goal Conversion benchmark?

The average Ad Cost per Goal Conversion on Facebook is $18.68, according to Wordstream's 2020 benchmark study of Facebook Ads across 18 industries.

Example

A business that spends $500 dollars on an ad and achieves 50 goal conversions (paying customers for example) has an Ad Cost per Goal Conversion of $10.

More about this metric

In order to measure the cost effectiveness of ads, businesses track advertisement costs against conversions. A goal conversion refers to any predefined actions, or set goals, that the website user performs in a session. Ad Cost per Goal Conversion is the amount of money spent on an advertisement that leads to a goal conversion. This metric can indicate how effectively advertisement investment converts to goals being met. An Ad Cost per Goal Conversion that is too high can indicate that the ads are not converting leads to actions.

A Google Ad for a website can be an effective way to drive traffic to the website. Alternately, Facebook ads can be just as effective and has had more than 2 million advertisers since 2018.

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