Share yours if possible, and provide some tips and advice.
You paid $1.26 every time someone clicked on your advert. How likely is it that someone who clicks on your advert will make a purchase, and how much do you stand to make if they do?
I’ll make up some numbers here as an example. Let’s say that 10% of people who click your advert will make a purchase, and you’ll profit $10 from that sale. So, in that case, you would have paid $1.26 for a 10% chance to earn $10, which has an expected value of 10% × $10 - $1.26 = -$0.26.
You can do a similar calculation using your own numbers as appropriate
Depending on the product/service. The cost of customer acquisition needs to be less than a 1/3 of the cost of the product. If your product costs $100, then this is a great customer acquisition cost. If it’s $1, then pretty bad.