When calculating manual bid amounts for a social advertising campaign, one item you’ll need to identify is your max Cost per Click (CPC), which is a reasonable bid amount for a user to click your ad’s CTA. Calculate your max CPC by multiplying your target Cost per Acquisition by:

When calculating manual bid amounts for a social advertising campaign, one item you’ll need to identify is your max Cost per Click (CPC), which is a reasonable bid amount for a user to click your ad’s CTA. Calculate your max CPC by multiplying your target Cost per Acquisition by:

 

• the lifetime value of a customer to your organization
• your annual profit margin divided by number of customers
• your conversion rate
• the cost of acquiring a new customer, minus costs