The Exponential Cost of Wasted Ad Spend

Not unsurprisingly, your cost-per-conversion is directly related to your wasted ad spend.

Unraveling this relationship is fairly complex, but I’ve already done the legwork for you, so you can just benefit from the results.

Now, you’d think the connection between wasted ad spend would be linear. In other words, for every 10% increase in wasted ad spend, your cost-per-conversion would increase by around 10%.

Let’s take a look.

Since cost-per-click has a significant effect on cost-per-conversion, let’s just evaluate Google Ads accounts with an effective cost-per-click of around $1.00: