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Please help. I need solution for calculating cpa

Discussion in 'General Internet Marketing' started by mm85, Aug 1, 2012.

  1. mm85

    mm85 Affiliate affiliate

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    This is the problem:

    210,334 impressions, CTR 0.53% and 32 leads. The bid/price is $0.14 per 1k impressions.

    I need to calculate by CPA value (lead related value).

    Please provide me the whole process.

    Many thanks.

    PS I have exam tomorrow.... :D
     
  2. monetizer
  3. LukePeerFly

    LukePeerFly Super Moderator Super Mod moderator Affiliate Manager Service Manager affiliate

    You've paid $29.45 for the traffic (210,334 impressions/1000 * $0.14). You have generated 32 leads, so you take your total spend and divide it by 32...
    $29.45/32 = $0.92

    You are currently paying $0.92 per lead. Someone correct me if I'm wrong, but I'll be really embarrassed.
     
  4. LukePeerFly

    LukePeerFly Super Moderator Super Mod moderator Affiliate Manager Service Manager affiliate

    BTW, if this is on some math homework that's pretty awesome.
     
  5. mm85

    mm85 Affiliate affiliate

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    Thanks. But I am not sure that is correct.

    I have CRT as well that I have to use somehow.

    Also this is another formula that I have to use:

    CPA=ad campaign cost/[number of impressions x CTR x CR]

    Take a look on wikipedia formula for CPA and examples.

    I have to calculate CR first (but don't know how)

    What you think?
     
  6. Andy Haskins

    Andy Haskins Affiliate affiliate

    I understand this is probably no use to you now but just interested to see what everyone else gets?

    I get the same as Luke, 0.92 CPA to break even.

    I have a CVR of 3% based on the following:

    210,334 impressions
    0.53% CTR


    Therefore

    (0.53/100) x 210,334 = 1,115 clicks

    32 leads from 1,115 clicks

    32 / 1,115 = 3% CVR

    0.14 CPM x 210,334 = $29.45 total cost

    $29.45 / 32 leads = $0.92 breakeven CPA.

    However.....

    If you were to pay CPC you would need to be bidding at $0.03 to breakeven.

    I may have gone a little overboard there but it's always interesting (to me) to see how people go about these things. Anyone else see any flaw in my method? Please say if so, we all make mistakes!
     

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