No doubt a reasonable question for sure, but one with more than one answer! Advertising should not be viewed as a cost at all but as an investment. The investment brings return which will be either positive or negative. To fully understand how to measure the return it is necessary to understand some advertising terms:
CPM- “Cost Per Thousand.” This is the cost to reach 1000 people with an impression. CPO- This means “Cost Per Order” – “Cost Per Sale.” This is the cumulative cost of getting a sale per customer. CPL– “Cost Per Lead” means just that. The cost to obtain a qualified prospect with no guarantee that the “Lead” can be converted to a sale. PPC or CPC– “Pay Per Click” or “Cost Per Click” is the cost of Digital Advertising for the amount it costs to get someone to click on your ad. ROI– This is the “real” measurement of what you should look for with your advertising campaign. It is the definitive answer to the question “How much does it cost to advertise. This is “Return on Investment” or how many dollars do you get out (if any) for each dollar that you put in.
The best way to ensure that you are indeed getting the best return on your advertising investment you may want to consider bringing in the advice of professionals who can help you not only understand the terms but also show you how you can achieve the highest possible results from each advertising dollar that you invest.