The three main reasons why the cpi is hard to measure accurately are: (1) the lack of a universally accepted way to calculate
cpa; (2) different levels of conversion rates for various types of ads, and finally (3) what should be counted as a conversion.
The first issue is that there is no universally accepted way to calculate cpa. Many people think this should be the number of conversions divided by total clicks, but others disagree with this idea and say it should be calculated as a percentage conversion rate from click-throughs to purchases. The second problem arises when different types of ads or advertising campaigns have drastically different average conversion rates for what would traditionally count as a conversion (e.g., clicking an ad vs completing online purchase). Finally, determining what counts as a “conversion” can vary depending on context: e.g., some companies may only want two step transactions counted while other might require four steps in order to qualify.
This is the end of the content.
Please leave feedback on what you think should be changed or added in order to help me write better long-form content! Thank you for your time. 🙂 I hope this was helpful and that it will lead to a good grade.
The three reasons why CPI can often be hard to measure accurately are because many advertisers disagree about what counts as conversion; it is difficult when different types of ads have drastically different average conversion rates, so there needs to be some standardization; and determining what counts as a “conversion” can vary depending on context: e.g., two step transactions may count while four steps might not qualify under certain circumstances. Some people believe the best way to measure and compare CPI is to calculate the value of all conversions, while others argue that conversion rates should be calculated by dividing number of clicks on an ad with the amount spent.
To find out more about what this means for advertisers in practice: please refer to our blog post “why cpi can’t always be measured accurately” found here:
The next step is to measure what “conversion” means in this context. This may vary based off of the company’s goals, but typically a conversion would mean an email sign-up or sale. So if a client has optimized their campaign for these conversions they will likely have higher quality scores than ads that just want clicks regardless of whether or not those are converting into sales. The way you calculate performance metrics like click through rate (CTR) and cost per conversion (CPA) also plays an important role in accuracy because different types of ads have drastically different average conversion rates so there needs to be some standardization; determining what counts as a conversion is also an issue.
This blog post will give you an introduction to what the three most common reasons are for why CPI can be hard to measure accurately, but it’s important not to overlook your own business goals and industry specifics when choosing a measurement tool!
The first reason that CPI can be difficult to track in its entirety is because of click fraud. Click fraud occurs when someone clicks on ads they don’t like or have no interest in just so their competitor doesn’t get credit from that ad. When fraudulent clicks happen, advertisers needlessly spend more money than they should and often lose out on quality score points as well since Google views this behavior as spam.