## Cost Per Conversion Rate (CCR)

In digital marketing, the term “cost per conversion” refers to the total amount spent on an advertisement relative to its success in reaching its target. To calculate conversion costs, you need to understand them first. They are also often referred to as conversion costs or cost per conversion. However, do not confuse these terms with cost per click. Calculating conversion costs allows you to calculate the average cost per conversion for a given customer.

## How Should I Calculate The Conversion Cost?

To calculate the conversion cost is a relatively straightforward process. For the calculation, you need to know the total campaign spend and the number of conversions generated by the campaign. You must understand the conversion cost formula to fully grasp other concepts like campaign budget, PPC ROI, and campaign waste.

The conversion cost mathematical formula is;

Cost per conversion = (Total campaign cost) / (Number of conversions).

## Tips For Lowering The Cost Per Conversion

The truth is that a high cost per conversion rate may indicate that your ad isn’t performing well.

Fortunately, you can do a few things to lower this number. Here are 4 ideas on how to lower your customer acquisition costs;

1. Write better text.

If your ads struggle to convert your customer, it may be that your text is too poor. In this type of scenario, you must rethink your current text and create one that’s more enticing and appeals to your target audience.