Profit per Click: What It Is & Why You Should Track It

What is one of the biggest challenges faced by all performance marketing stakeholders – agencies, marketers, brands, investors, and executives?

Consistently and correctly quantifying the value created for the enterprise via marketing initiatives.

To put it succinctly: answering the age-old questions of, “What’s the ROI on our marketing?”

Or, more simply, “What’s working and what isn’t working?”

Marketing platforms have historically offered marketers various types of data to support this effort including:

  • Advertising cost data (CPC and/or CPM).
  • Intermediate performance data (clicks, impressions, etc.).
  • Revenue/value data (Conversions/Leads, Conversion Value, Transaction Revenue, etc.).
  • And if maximizing revenue/value is good, then doesn’t it follow that Revenue/Value per Click (“RPC”) is a solid directional indicator that the program is performing well?
  • Isn’t converting people at a higher rate good? Isn’t selling more stuff/driving more leads a good thing? Isn’t reducing your CPCs/CPMs positive?

    The answer to each of those questions is a resounding “maybe.”

    To understand why it’s important to remember that the overall goal of a business isn’t just to sell more stuff or acquire more customers; it’s to do those things profitably.

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