Cost Per Conversion / Marketing Terms Cost Per Conversion Cost per conversion is a digital marketing metric that measures how much it costs to achieve a single conversion action through a paid campaign. A conversion could be any goal-based outcome, such as a purchase, lead form submission, email sign-up, event registration or donation. This metric helps marketers assess the financial efficiency of their campaigns and compare performance across channels, ad sets or creatives. To calculate cost per conversion, divide the total cost of a campaign by the number of conversions it generated. For example, if you spend $1,000 on a campaign that results in 50 conversions, your cost per conversion is $20. This figure helps determine whether a campaign is delivering acceptable value for the investment. Unlike cost per click, which only measures engagement, cost per conversion ties spend directly to meaningful results. It can be tracked using analytics platforms and ad dashboards like Google Ads, Meta Ads Manager or HubSpot. Reducing cost per conversion involves improving both traffic quality and on-site experience. This could mean refining targeting, improving ad copy and creative, streamlining the conversion path or optimising landing pages. It also helps to define what a valuable conversion looks like and to separate low-value interactions from high-intent actions. For nonprofits, lowering cost per conversion might mean increasing donations or sign-ups without raising budget. For SaaS or B2B companies, it might involve getting more qualified leads into the sales funnel for less. By monitoring this metric closely, marketers can make data-informed decisions that increase efficiency and impact.