Advertising

What is Cost Per Result?

Cost Per Result is the average amount spent to achieve one instance of a campaign's defined success action, which can be a lead, an app install, a video view, or any other objective set for that campaign. It is a flexible, objective-specific counterpart to metrics like cost per acquisition or cost per click, used when the desired outcome isn't a sale or a click.

TL;DR

Cost per result is what it costs to get one of whatever a campaign is actually optimizing for, whether that's a lead, an install, or a view. It only means something in the context of what result was defined.

Formula

Cost Per Result = Total Ad Spend / Number of Results

Why It Matters

Cost per result matters because not every campaign is selling something directly, and forcing every objective into a cost-per-acquisition or cost-per-click frame hides whether a campaign is actually hitting its real goal. A lead-gen campaign and a video-awareness campaign have completely different success actions, and cost per result lets each be judged against the metric that actually matters for it. Ignoring this distinction leads teams to compare campaigns that aren't comparable, drawing the wrong conclusions about which one is performing better. Because the defined result varies by campaign, cost per result is only useful when read alongside what that result was set to, and it's typically tracked over time within the same campaign type to catch efficiency drift.

Example

A lead-generation campaign spends $6,000 and generates 300 form-fill leads, the defined result for that campaign. Cost per result is $6,000 divided by 300, which equals $20 per lead. If a separate campaign optimized for video views instead spends $6,000 and generates 40,000 views, its cost per result is $0.15 per view, a number that is only meaningful when compared to other video campaigns, since cost per result values are not comparable across campaigns with different defined objectives.

Frequently Asked Questions

  • It's whatever success action the campaign was set up to optimize for, such as a lead form submission, an app install, a video view, or a purchase. The platform typically counts a result whenever that defined action is completed and attributed to the campaign.

  • Cost per acquisition specifically measures the cost of a sale or paying customer, while cost per result is a broader term that applies to any campaign objective, including ones that aren't a direct sale. Cost per acquisition is effectively one specific type of cost per result.

  • Only if the campaigns share the same defined result. A campaign optimized for leads and one optimized for video views will naturally have very different cost per result figures that aren't meaningfully comparable to each other.

  • Most advertisers check it as often as they review campaign performance generally, which is often daily or weekly during an active campaign, so budget can be shifted quickly if it starts trending in the wrong direction.

  • Audience targeting quality, ad relevance, and auction competition all affect it, similar to CPC and CPM. A campaign with a poorly matched audience or weak creative typically sees a higher cost per result even if overall spend and impressions stay the same.