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What is CPC, CTR & CPA

CPC

CPC stands for “ Cost-Per-Click ”. This value shows in Shopstory how much a click on the respective keyword is likely to cost you. The average CPC is shown at the ad level. 

Whether a CPC is high or low depends on how popular a keyword is. The broader and more general a keyword is (such as “car”), the more expensive the CPC is because there is more competition. The more specific and longer a keyword is, the cheaper it is - normally. For example, the keyword “car” might have a CPC of €6.12 (a click costs €6.12), but the long-tail keyword “used car lease Vienna” only has a CPC of €1.31.

This is where Shopstory shows  its strengths  , as keywords are suggested that match the stored profitability values ​​and in unusual but sensible variants. This allows us to find cheap keywords with less competition that still give you a lot of impressions on Google.

How high the CPC will ultimately be with a click also depends on the quality score. If this is low, a keyword becomes more expensive with a click; if this is high, a keyword becomes cheaper.

The quality score is described in detail here: https://support.google.com/google-ads/answer/6167118?hl=de

What is a "good" value for the CPC depends on various factors (e.g. brand or category, industry etc.) and cannot be generalized.

CTR

The CTR is the so-called “ click-through rate ” (in German: click rate ). It shows the percentage of how often an ad was clicked in relation to the number of ads displayed / impressions.

What is a "good" value here depends on various factors (e.g. brand or category, industry etc.) and cannot be generalized.

CPA

The abbreviation CPA stands for “ Cost-Per-Action ”, whereby an “Action” in this context is usually a sale (an acquisition ). Thus, the common term " cost-per-acquisition " is also appropriate. What is an acquisition in this context is a matter of definition  and depends on how it is stored in the Google Ads account.  

If the “ Acquisition ” (or also ) is defined as “ Purchase ”, this value shows how much the application will cost you per sale.

An example: Your costs per acquisition for a keyword are €4.65. This means that you spend an average of €4.65 on advertising so that a buyer who comes to your webshop via your advertising buys something from you. This value will help you figure out how “expensive” or “cheap” some of your keywords are. A keyword with 10 conversions / acquisitions and a CPA of €2.25 is usually significantly better than a keyword with 15 conversions and a CPA of €10.21. Because you have to invest significantly less money per purchase with the first keyword than with the second keyword.

Important:

Important: It can take up to 10 days for Google to match a purchase and it can be up to 30 days behind the purchase.