What is CPP?

CPP stands for "Cost Per Purchase." It's a key metric in digital advertising that measures the cost incurred for each completed purchase driven by an ad campaign. CPP helps advertisers gauge the efficiency and profitability of their marketing efforts by showing how much they're spending to convert a customer into a buyer.

How to measure CPP?

CPP is calculated by dividing the total amount spent on an ad campaign by the number of purchases made as a result of the campaign.

CPP = Total Ad Spend / Number of Purchases

Example: If an advertiser spends $10,000 on a campaign and generates 500 purchases, the CPP would be $20.

Why is CPP important to marketers?

CPP is a critical performance indicator for assessing the return on investment (ROI) of a marketing campaign. By tracking CPP, marketers can determine if their ad spend is efficiently translating into sales and make informed decisions about optimizing their budget, adjusting targeting strategies, or revising ad creative to maximize profitability.

Who needs to know what CPP 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 CPP in a sentence:

The e-commerce team monitored the CPP of their Facebook campaign closely to ensure they were achieving a sustainable cost-per-sale while maximizing their overall return on ad spend (ROAS).