CPO or Cost Per Order is a model in which the advertiser is paid per order if the products specified on an e-commerce site are ordered by the visitors coming through the advertisement. With Cost Per Order, companies invest their budgets in an advertising model that will generate 100% profit. With Cost Per Order, it becomes possible to measure the real success of the advertisement.
It is quite difficult to successfully complete Cost Per Order campaigns. Because while the visitor can easily click on any advertisement on your site, they may not perform the order process as you have determined. For the CPO income, it is not enough for the visitor to add the product to the basket, and it may also be determined as a criterion to make the purchase.
What Decisions Can Be Taken Based on CPO Figures?
While determining the cost-per-order (CPO) figures, many parts of the company are also effective in this decision.
How much will employees be paid to assemble products or get them ready to ship?
What equipment should be used and purchased for product production?
What should be the shipping methods?
What is the product price?
What types of marketing should be?
Cost Per Order is affected when answering questions.
How is CPO Advertising Cost Calculated?
To calculate your advertising cost with Cost Per Order, there are two things you need to know.
Marketing Expenses
Number of Orders
Cost = Marketing Expenses / Number of Orders
Cost Per Order is much more important in small and medium-sized companies with low budgets as it reduces the risk of overspending on advertising.
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