Ways to Improve Your CTR in Advertising and SEO

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Marginal CPA is the " upper limit of the cost that can be spent to acquire one customer ." It can also be said as "the advertising cost that is plus or minus zero with profits (= break-even point)," and can be calculated with the following formula. [Marginal CPA calculation formula] Sales cost - cost = marginal CPA Let's calculate the marginal CPA using the sale of earphones as an example. (*To make it easier to understand, we've calculated it simply based on the unit price and purchase cost.


In reality, labor costs and the cost of materials used austria telegram database for sales are also included in the cost.) [Marginal CPA calculation example] Business: Earphone sales Purchase price: 10,000 yen Purchase cost: 7,000 yen Sales price 10,000 yen - cost 7,000 yen = marginal CPA 3,000 If we apply the formula to the above conditions, the marginal CPA comes out to be 3,000 yen. Step 2: Set your target CPA Next, set the target CPA. The target CPA is a number that indicates " how much you want to spend per conversion .


" After understanding the "limit CPA" mentioned above, confirm and set it using the following formula. [Target CPA calculation formula] Marginal CPA - Profit you want to secure = Target CPA Let's do the calculations again using the earphones mentioned earlier as an example. [Target CPA calculation example] Sales price: 10,000 yen Original price: 7,000 yen Marginal CPA: 3,000 yen Profit you want to secure: 2,000 yen The calculation was: Limit CPA 3,000 yen - Desired profit 2,000 yen = Target CPA 1,000 yen.