Cost Per Order (CPO)

Definition of Cost Per Order (CPO)

The cost associated with acquiring an order, calculated by dividing total advertising cost by the number of orders.

Explanation of Cost Per Order (CPO)

Cost Per Order (CPO) is a metric used in digital marketing to measure the cost associated with acquiring a single order or sale. This metric helps businesses understand the efficiency of their marketing efforts in driving sales. For example, if an advertising campaign costs $1,000 and results in 50 orders, the CPO is $20. By tracking CPO, businesses can evaluate the profitability of their marketing strategies and make data-driven decisions to optimize their campaigns. Lowering the CPO can lead to higher margins and better ROI for marketing investments. CPO is particularly useful for e-commerce businesses, where the primary goal is to increase sales and revenue. By focusing on CPO, marketers can ensure they are getting the most value from their advertising spend and driving growth for their business.

This dictionary entry was written by

Per-Gulbrand Peter Braathen

With a foundation in doctoral-level research, Per-Gulbrand Peter Braathen is a seasoned expert in the areas of marketing, branding and communication. His proficiency extends to marketing management, branding and communication strategy. Braathen's experience is underscored by his rich background from various industries, including entertainment. A distinguished alumnus of the USC Marshall School of Business, Braathen boasts a Master of Science in Marketing, complemented by a Graduate Certificate in the Business of Entertainment from the USC School of Cinematic Arts as well as two undergraduate Bachelor degrees from the esteemed University of Southern California.