Cost as parameter when evaluating ads

by Fredrik Andersson   Last Updated December 07, 2018 16:19 PM

I work with digital marketing and Im trying to improve my testing my ads more correctly. By using https://neilpatel.com/ab-testing-calculator/ I can verify that my tests are reaching 95-statistically significant.

But I would also consider the cost per conversion. An example: Ad 1: Clicks 300 conversions: 30 cost 5000 Ad 2: Clicks 200 conversions: 50 cost 50000

By using the tool I linked to I can conclude that Ad2 is the winner. But when looking at the costs the cost per conversion is way more expensive.

Is there any logic way to include costs when I compare ads?

Tags : marketing


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Updated February 26, 2019 18:19 PM