Cost Per Order (CPO) - Definition
Digital advertising is the land of acronyms and technical terms. Our glossary can help you make sense of it all with definitions of the most common terminology.
What is Cost Per Order (CPO)?
The average price a marketer pays for each order is known as cost-per-order (CPO). This metric represents the amount an advertiser spends to acquire each successful customer order through their marketing efforts. It is calculated by dividing the total cost of the advertising campaign by the total number of orders generated. Cost-per-order provides valuable insights into the overall efficiency of a marketing campaign, helping marketers assess how cost-effectively their advertising efforts are converting prospects into paying customers. By understanding CPO, businesses can optimize their campaigns to ensure they are achieving a favorable return on investment for every sale made.