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Paid Media

How much can you pay per click?

Turn order economics and conversion rate into a starting CPC ceiling.

Calculate the value of an eligible click

If a sale can support $42 of media and 3% of paid clicks become sales, the implied CPC ceiling is $1.26. Use a rate whose denominator actually matches the clicks you pay for.

Calculate the value of an eligible click. Plan for a weaker conversion rate. Reconcile what was paid and what arrived.
Key decisions covered in this article.

Plan for a weaker conversion rate

At 2% conversion, that same order supports only $0.84 per click. If the auction costs $1.10, test a narrower audience or a stronger destination before assuming the higher conversion rate will hold.

Reconcile what was paid and what arrived

Separate ad clicks, loaded visits, and orders. If 80% of clicks load the page and 3% of loaded visits buy, the click-to-sale rate is 2.4%.

Try a related tool

Estimate what you can pay to acquire an order while reserving a desired contribution. Use consistent per-order inputs.

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