effect on cost per conversion, let's take a look at how wasted ad spend varies with cost per conversion for AdWords accounts with a cost per click around $1.00. Wasted ad spend has an exponential effect on cost per conversion Basically, for every 10% increase in wasted ad spend, your cost per conversion increases by 44-72%. Advertising Continue reading below Everytime. For example, let's say you're currently wasting 30% of your budget on non-converting research and your cost per conversion is $10.00.
Every 10% increase in wasted ad spend increases your cost per conversion by 44-72%. [/pullquote] If your wasted ad spend increases from 30% to 76%, your cost per conversion targeted email list will be around $53.79 to $120.20. That's an increase from 540 to 1,200%! And this trend is true for every industry, conversion rate, and average cost per click. The fact is, the more money you waste on non-converting search terms, the less money you can invest in the search terms that matter.
the variation in the data (for statisticians, R 2 = 0.597 after regression at the logarithmic level). However, it is an accurate model of the data (ρ <0.001). Therefore, the exact rate at which increased wasted ad spend affects your cost per conversion will vary from account to account while following the trends described in this article. Advertising Continue reading below That said, ways to control your cost per conversion. For comparison, let's look at Quality Score, which has often been described as the most effective way to manage cost per conversion.