$500 at a $10 CPM
- Ad budget
- 500
- CPM (cost per 1,000 impressions)
- 10
- Link click-through
- 1
- Clicks that convert
- 5
Result Cost per click: 1.00
Impressions: 50,000
Link clicks: 500
Conversions: 25
Cost per conversion: 20.00
- Impressions = 500 ÷ 10 × 1000 = 50000
- Clicks = 50000 × 1% = 500
- Cost per click = 500 ÷ 500 = 1
- Conversions = 500 × 5% = 25
- Cost per conversion = 500 ÷ 25 = 20
A small test campaign with a 1% link CTR and a 5% landing-page conversion share.