1 min read

How to Calculate Marketing Cost Per Unit (MCPU)

How to Calculate Marketing Cost Per Unit (MCPU) | Digital Agency | Mighty Roar

When you don't have deep pockets, every dollar in your marketing budget counts and you need to allocate your money as effectively as possible. That's why it's helpful to know your marketing cost per unit.

After all, the way that we - and our marketing efforts - are ultimately judged is by how many units of a product or service we've sold in a given period.

And while we often look at how much we're spending per customer or per channel, it's important to also understand how much you're spending in marketing per unit.<

 

 

To determine how your marketing is performing, your cost per unit should decline as a product or service matures. This is due to the fact that as more people buy, your share of voice and any earned media should increase, effectively lowering your overall marketing costs. This doesn't mean that you should stop marketing, but rather that you may want to pay more attention to new channels or segments.

However, if your marketing cost per unit increases over time that should serve as a strong signal that something isn't working - either your marketing is off target or using the wrong channels, or your customers are beginning to lose interest.

And, if you have some marketing metrics that you'd like address in an upcoming video, let us know and it may be our next Ad Math video.

Mighty Roar | Digital Marketing Agency | SEO Trends

3 SEO Trends to Pay Attention to in 2022

Search engine optimization (SEO) is constantly evolving, and the start of 2022 has shown no signs that the pace is slowing.

Read More
Mighty Roar | Email Marketing | Unread Emails | Improve Email Open Rate

5 Ways to Improve Your Email Open Rate

Email marketing is a challenge, especially in the face of the ongoing competition for your customers' attention from social media, messaging apps,...

Read More
End Of Third Party Cookies | Tracking Cookies | Ad Cookies | Digital Agency | Mighty Roar

The End of Third-Party Cookies & What To Focus On Now

In January 2020, Google announced what many saw as the death of third-party cookies. Namely, that Google would stop supporting them within their...

Read More