In the previous lesson, key digital marketing cost metrics were introduced: cost per impression (CPI), cost per click (CPC), and cost per order (CPO). Let’s consider the following simple example to calculate these three cost effectiveness indicators.
An Internet retailer spent €24,000 on online advertising and generated 1.2 million impressions, which led to 20,000 clicks, with 1 in 10 clicks resulting in a purchase.
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Please calculate the three cost effectiveness indicators for the example.