Question 1

What is Max CPA?

Accepted Answer

Max CPA (Maximum Cost Per Acquisition) is the highest amount you can pay to acquire a customer while still remaining profitable. It's calculated as: AOV × Profit Margin. For example, if your AOV is $100 and margin is 40%, your Max CPA is $40.

Question 2

How do I calculate Max CPC?

Accepted Answer

Max CPC (Maximum Cost Per Click) is calculated as: Max CPA × Conversion Rate. If your Max CPA is $40 and your conversion rate is 3%, your Max CPC is $1.20. This is the most you should bid per click to remain profitable.

Question 3

Why are Max CPA and CPC important for bidding?

Accepted Answer

Max CPA and CPC set guardrails for your ad bidding strategy. By knowing your maximum profitable bid, you can set bid caps in ad platforms to prevent overspending and ensure every acquisition is profitable.

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