If you were to review your advertising management policy based on this calculation, for example, it would be reasonable to say, "To ensure profits, we will manage ads with a target CPA of 1,000 yen or less. If the CPA exceeds 3,000 yen, we will be in the red, so we will consider stopping delivery or making drastic improvements." \Click here for PDF documents that you can read later/ Three ways to evaluate cost per acquisition (CPA) From here, we will introduce three specific methods for actually evaluating the effectiveness of your campaigns using cost per acquisition (CPA).
[Three ways to evaluate cost per acquisition (CPA)] Method 1: Compare austria telegram database with your target CPA Method 2: Analyze the balance with LTV Method 3: Use the CPA market rate as a guide Method 1: Compare with your target CPA The first step is to compare your current CPA with your target CPA. This is a simple concept: if you exceed your target, you make a profit; if you fall short, you lose money . Target CPA is 5,000 yen, current CPA is 4,000 yen = 1,000 yen profit Target CPA is 5,000 yen, current CPA is 6,000 yen = Profit/loss of 1,000 yen If the current CPA is significantly lower than the target CPA (= greater profits), adding a budget may be able to further increase sales and profits.
On the other hand, if the current CPA is significantly higher than the target CPA, it may be necessary to take measures such as reviewing the content of the measures to improve the CPA or canceling the measures themselves. Method 2: Compare with LTV The next point is a comparison with LTV . (LTV is the customer lifetime value, the profit that one customer will generate in their lifetime.) Cost-effectiveness is judged from the perspective that "if CPA exceeds LTV, it is in the red and should be reviewed.
What is the ideal ratio between UUs and PVs
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