The cost per conversion, often represented as Cost/Conv, is a metric that calculates the average cost incurred for each conversion generated through a marketing campaign (in our case, Google Ads). It is calculated by dividing the total cost of the campaign by the total number of conversions, which can include various actions such as form submissions and phone calls.
The industry standard for cost per conversion typically falls within the range of $40 to $100 per conversion. This means that, on average, businesses in a particular industry or sector are willing to spend between $40 and $100 for each successful conversion achieved through their advertising efforts.
Cost per conversion is influenced by several factors, with physical location being one of the most significant. If your business is located in a densely populated area with high traffic and numerous competitors, your cost per conversion will likely be higher than if it were located in a less competitive location.