Understand Complicated Digital Marketing Jargons In 5 Minutes
A lady walk into the club, seen by you, the lady gained 1 Impression.
As she walk inside the bar looking for a place to sit, another 4 guys look at her, she gained another 4 Impression (Total 5 Impression).
The lady sat beside the bar, you approached her and ask “can I buy you a drink?”, she said “why not?” the lady now have 1 click.
There are 5 guys noticed the girl but only you has the ball to approached here, the lady now has a click-through-rate (CTR) of 20%. (1 click / 5 Impression)
You ask the girl “what you wanna drink?”, “whiskey on the rock” she said.
In order to approach you, it cost you $15, so your cost-per-click (CPC) is $15.
As you guys talk & talk, both of you realized that you guys really get along, you looked at the watch, 25 mins has passed, your session duration now is 25 minutes.
After an hour has passed, both of you got tipsy, you asked the lady if she want to go home with you & she said yes (Jackpot!). You got 1 conversionnow.
This is the tenth girl you approached tonight, so far none of them said yes until this lady, your conversion rate is 10%. (1 conversion / 10 click)
When both of you on the way home, you told the lady that you have spent $100 on drink for all the other girl but only her going home with you, the cost-per-acquisition (CPA) for the girl is $100. ($100 amount spent / 1 conversion)
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