Founder of the Promo Expert agency
Posted: Wed Jan 22, 2025 6:33 am
An example of the impact of CPS on the efficiency of a digital funnel
Let's say you spent 40,000 rubles on displaying an ad and received 300 applications, from which 210 sales were made with an average check of 12,000 rubles. CPS will be 190 rubles, and revenue will be 2,520,000 rubles.
Let's consider how the sales funnel will change if the cost of the application is higher or lower by 10 rubles:
Unit Economics Calculator: Estimating the Impact of CPS on Revenue Changes
As you can see from the calculator, with a decrease in CPS, sales revenue will increase by 5.7% and amount to RUB 2,664,000. If the indicator increases by RUB 10, revenue will decrease to RUB 2,412,000.
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How to reduce CPS?
The task of how to reduce CPS can be complex. But there are several strategies that can help improve this metric:
Research your target audience. Identify the most relevant bc data thailand phone number interested audience for your product or service. Focus on them.
Optimize your advertising campaign. Use A/B testing and track results to identify the most effective advertising strategies.
Improve Conversion: Optimize your website or product pages to improve conversion.
Increase customer loyalty. Provide a high-quality product or service, improve after-sales service, and implement loyalty programs to encourage repeat purchases.
Competitor Research: Research and analyze competitor strategies to identify best practices and apply them to your advertising campaign.
Summary: CPS - what is it in advertising
CPS (Cost Per Sale) measures the cost of each sale. Calculating CPS will help you estimate what costs are required to achieve the desired sales level. Reducing CPS requires optimizing your advertising campaign, attracting the target audience, improving conversion, and increasing customer loyalty.
In the world of online advertising, there are many indicators and metrics that help evaluate the effectiveness of campaigns and achieve the set goals. One of the key indicators is CPA (cost per target action). Read more about how to calculate the indicator in the article: "What is CPA" .
Let's say you spent 40,000 rubles on displaying an ad and received 300 applications, from which 210 sales were made with an average check of 12,000 rubles. CPS will be 190 rubles, and revenue will be 2,520,000 rubles.
Let's consider how the sales funnel will change if the cost of the application is higher or lower by 10 rubles:
Unit Economics Calculator: Estimating the Impact of CPS on Revenue Changes
As you can see from the calculator, with a decrease in CPS, sales revenue will increase by 5.7% and amount to RUB 2,664,000. If the indicator increases by RUB 10, revenue will decrease to RUB 2,412,000.
Subscribe to the telegram channel "Promo Expert" with Evgeniy Letov
Sharing experiences in online advertising
We show cases
We have fun through memes
We publish free instructions for self-promotion
We inform about webinars, seminars, conferences
Subscribe to the channel
Evgeny Letov,
How to reduce CPS?
The task of how to reduce CPS can be complex. But there are several strategies that can help improve this metric:
Research your target audience. Identify the most relevant bc data thailand phone number interested audience for your product or service. Focus on them.
Optimize your advertising campaign. Use A/B testing and track results to identify the most effective advertising strategies.
Improve Conversion: Optimize your website or product pages to improve conversion.
Increase customer loyalty. Provide a high-quality product or service, improve after-sales service, and implement loyalty programs to encourage repeat purchases.
Competitor Research: Research and analyze competitor strategies to identify best practices and apply them to your advertising campaign.
Summary: CPS - what is it in advertising
CPS (Cost Per Sale) measures the cost of each sale. Calculating CPS will help you estimate what costs are required to achieve the desired sales level. Reducing CPS requires optimizing your advertising campaign, attracting the target audience, improving conversion, and increasing customer loyalty.
In the world of online advertising, there are many indicators and metrics that help evaluate the effectiveness of campaigns and achieve the set goals. One of the key indicators is CPA (cost per target action). Read more about how to calculate the indicator in the article: "What is CPA" .