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How do you calculate the AdWords cost-per-conversion?

There has never happened to find discrepancies between the cost per conversionindicated by Google Analytics and the one calculated by you?

If your AdWords account containing several campaigns, including mobile campaigns, it might happen that the cost-per-conversion data differ from those you would expect. In this case, quantify the performance of advertising on Google may become less simplethan expected.

The difference of calculation isn't due to a mathematical error in Google, there is simple explanation, let's look at a practical example:

Google AdWords Conversion Cost

In the attached screenshot we can see the following information:



Cost: 9,72€
Conversions (1-per-click): 13
Cost per conversion: 0,15€/EST.+1,86€/min
Calculating the cost per conversion with the classical formula:

Cost per conversion = Cost/Conversions = 9,72€/13 = 0,74€
As we can see the calculated cost per conversion (0,74€) is different from that shown by Google Analytics (0,15€/EST.+1,86€/min). I went to the bottom of the matter by contacting an AdWords rep who told me the following:

The cost per conversion is not always calculated by dividing the total cost for conversions. Calculate the cost per conversion is slightly more complicated than simple division because not all clicks (and associated clicks) are suitable for incorporation in the report of the conversion tracking. As a result the numbers that we see in the interface may be different from those calculated by dividing the cost columnfor the column of conversions.

A classic case where you can find discrepancies between AdWords cost-per-conversionand the one calculated by the formula, it could happen when the campaign is promoting ads on mobile devices. There are many mobile devices that do not accept cookies. When a device does not accept cookies, the clicks on the ads may not be included in the report of the conversions and therefore in cost-per-conversion dataThis is because, in the device that does not accept cookies, the conversion trackingcode in JavaScript (for example in the thank you page) is not loaded and thus not conversions are recorded and are therefore not included in the report.

We take the data shown previously:

Total costs: 9,72€
The following conversions: 13
Cost per conversion: 0,15€/EST.+1,86€/min
Calculated cost per conversion: 0,74€
Unsuitable clicks (mobile devices) are not included in the calculation of the cost per conversion, then the cost of click is eligible:

0,15€/EST.+1,86€/min * 13 = 1,95 €

This means that cost comes from 1,95 € click fit and are recorded in the report, whilethe remaining cost (9,72€  1,95 €) = 7,77€ has been created by unsuitable to be click paths, most of which coming from mobile devices.

Since the cost per conversion is very important for every PPC campaign, always keep in mind this aspect.

You have found solutions to this "problem"? For reports use data from Analytics o rAdWords? Do you have any solutions to offer?

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