CPATC (Cost Per Add To Cart)
What is CPATC?
CPATC stands for "Cost Per Add to Cart." It measures the cost an advertiser pays for each instance of a user adding a product to their online shopping cart after interacting with an advertisement. CPATC is a crucial metric for e-commerce businesses to evaluate the efficiency of their ad campaigns in driving product interest and engagement.
How to measure CPATC?
CPATC is calculated by dividing the total advertising spend by the number of users who add a product to their cart.
CPATC = Total Advertising Spend / Number of Users Adding to Cart
Example: If an ad campaign costs $1,000 and generates 100 instances of users adding a product to their cart, the CPATC would be $10.
Why is CPATC important to marketers?
CPATC helps marketers assess the cost-effectiveness of their ad campaigns in driving product consideration and initiating the purchase process. By monitoring CPATC, marketers can optimize their advertising strategies to attract high-intent users and maximize return on investment. Check LCTR > ATCR > CVR to understand where key points of drop off occur during your users’ journey.
Who needs to know what CPATC is:
- Digital marketers
- Content marketers
- Email marketers
- Paid search marketers
- Social media marketers
- Conversion rate optimizers
- Web designers
- Product managers
- eCommerce businesses
- SaaS companies
- B2B companies
- B2C / D2C companies
Use CPATC in a sentence:
The marketing team analyzed the CPATC of their Meta campaign to evaluate its effectiveness in driving product interest and influencing user behavior.