We should not confuse this with cost per acquisition , which

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sumonasumonakha.t
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Joined: Sat Dec 28, 2024 3:26 am

We should not confuse this with cost per acquisition , which

Post by sumonasumonakha.t »

Break even point
Let's put it this way: all the calculations we make are based on establishing and maintaining a break-even point, that is: a calculation of the viability of the project. Not only does the project have to have a break-even point, but it must also be maintained day after day once its execution has begun. That is why it is important to understand the relationship between the investment we make and the result we expect.

The law of break-even is simple and fatal: for a business to have a break-even point, more moj data money must come in than goes out. In other words, marketing actions to produce leads are essential because those leads will become the clients that will make the business profitable. Therefore, if money is going to go out for marketing , we will have to take effective actions that guarantee that this money will not only return but will also generate profits.

CPM, CPC and CPA metrics are used to set advertising prices and also to better define what type of action is most appropriate for our objectives. Depending on the reaction you want to provoke in the user, the type of method that should be used will depend on it. Let's look at these three costs one by one.

CPA: Cost per action
, although it is a very similar concept, is not the same. In this case, it would not be how much it costs us to generate a client, but rather how much it costs us for the user to carry out a specific action on our page, that is, to carry out a conversion action. For example, if we use a strategy of downloading rich material, we will be charged each time that material is downloaded .

Let's get down to the nitty-gritty, then, divide the money you invested by the number of downloads that were made and the quotient of that operation will be your CPA. This option may be the most expensive of the three, but it also has a great return since it has a very good profile for converting leads into qualified leads . If your strategy is aimed at the middle-of-the-funnel audience , this option may be the best.
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