CPI Formula – How to Calculate Conversions per Impression
A conversion, the numerator of the CPI formula, is generally a desired outcome in a customer’s journey in your sales funnel especially when used to measure results in a platform like Google Ads or Facebook Ads.
CPI = Conversions / Impressions
CPI = CTR * CVR
Why should I measure CPI?
CPI is one of the most important metrics for testing ads because it can be improved with an increase in both CTR and CVR. If either click through rate or conversion rate decreases, it will put downward pressure on CPI
The best way to improve CPI is to balance and increase your clicks and conversion rate at the same time.
This can be done with split testing your ads and your landing pages. Frequent split testing can lead to huge increases in CPI which translates to greater business outcomes.