What does cost per conversion show?

• A. The total spend across the campaign.
• B. The number of conversions achieved.
• C. How much your ad costs you per conversion.
• D. The conversion rate of your ads.

Answer: (C)

Cost per conversion shows how much you pay, on average, for each conversion. It’s calculated by dividing total ad spend by the number of conversions. For example, spending $200 and getting 10 conversions means a cost per conversion of $20. This metric helps you judge how efficiently your spend is turning into conversions and guides bidding and optimization decisions. If your cost per conversion is higher than your target, you’d look to improve performance—adjust bids, refine keywords, boost quality scores, or optimize landing pages to lower the cost per conversion. This metric is different from total spend, the total number of conversions, and the conversion rate (which is conversions divided by clicks).