Cost Per Pixel (CPP)

Date created: Dec 14, 2020  •   Last updated: Jan 16, 2021

What is Cost Per Pixel?

Cost Per Pixel (CPP) is the average amount of money spent on conversions from tracking pixels in advertisements. A tracking pixel is a piece of code that enables collection and usage of user behavioural data to display targeted ads relevant to the user.

Alternate names: Cost Per Purchase

Formula

ƒ Sum(Ad Spend) / Count(Conversions from Pixels)

How to calculate

A Facebook ad has a pixel that results in 5,000 conversions. The total cost of the ad is $1,000. The Cost Per Pixel for the ad is $0.20.

Cost Per Pixel

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More about this metric

A tracking pixel is a small piece of HTML code used to track user behaviour and collect user data for targeting and re-targeting, analytics, and ultimately conversion. Pixels place cookies in the user’s computer that collect behavioural data that is transferred to an ad server, where the data is used to show relevant ads to the user. Tracking pixels increase conversions from paid ads by displaying the ad to a targeted audience with some level of affinity to your product instead of a broad range of casual users who may not find the ad relevant.

The average cost of conversions from pixels used across ad platforms is known as Cost Per Pixel. Pixels are free, but you are charged for the conversions resulting from pixels. It is mostly popular on Facebook ads. A Facebook ad campaign is allowed to have up to 100 pixels. However, with effective target segmentation, one pixel is sufficient to achieve goal conversions with paid ads. On Facebook, using a pixel is the only way to enable dynamic ads, track metrics like Cost Per Conversion, and access certain Facebook Ad tools.

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How to use pixels to increase ad campaign conversion.Can you have multiple pixels in one account?