How to Calculate your CPA on Ads(Based on Facts) скачать в хорошем качестве

How to Calculate your CPA on Ads(Based on Facts)

Stop using the "20% of ticket price" rule or spending your product's exact price to test an ad campaign! In this video, we break down the definitive, mathematically proven way to calculate your target Cost Per Acquisition (CPA) based on real unit economics. We dive deep into why standard rules of thumb cause businesses to either lose money or miss out on massive scaling opportunities. You will learn how to calculate your contribution margin—which is the portion of sales revenue that remains after variable costs are deducted—to find your true break-even point. From there, we cover how to calculate your maximum allowable CPA and set a profit-adjusted target that guarantees solvency. For businesses focused on the long term, we explain why a common benchmark for a sustainable business is an LTV:CPA ratio of 3:1 or higher. Finally, we reveal the statistical realities of ad testing and why you need to evaluate your marginal CPA, which isolates the cost of acquiring the next customer or group of customers at your current spend level. Topics covered: Why revenue-based CPA rules and "ticket price" testing are destroying your profit margins. How to calculate Contribution Margin and Maximum Allowable CPA. How to properly budget for ad testing to ensure statistical significance. LTV:CAC ratios for SaaS and high-repeat E-commerce models. Average CPA vs. Marginal CPA, and how to scale campaigns without losing money. Don't forget to subscribe to my channel to achieve a ROAS greater than 4! Showing Some High-Profit Ad Accounts of Coaches, Course Creators, and Info Product Sellers    • Showing Some High-Profit Ad Accounts of Co...   Stop guessing and start scaling. Grab a time for your free Ad Strategy Audit here: https://marceloely.com/ad-accounts/