What is the average industry CPC (or CPM) price paid by e-commerce companies in India and what is the average CPA as a result?

food-velveeta-37-swscan00947Don’t mean to give a cop-out answer – but these numbers really do vary by industry and also by the age / history of the site in question and the expertise of the people driving the optimisation on the site. That said, here are a few numbers I’ve seen at different e-com businesses here in India.

CPCs on Google will range from less than 2 cents (I’ve seen consistent CPCs of Rs. 0.75 to Rs. 1.00 in a couple of companies) to around 30 cents (Rs. 15 per click). A huge factor here is the history of your site and your past and current prowess in optimisation. CPCs on Facebook will start around Rs. 8 or so and decline over time to Rs. 4 or so if you figure out how to bid better.

CPAs are a function of your conversion rate. The best consistent conversion rate I’ve seen in India is up around 16% for a large e-com business. I’ve also seen another business at around 9%. So if you combine this conversion rate with CPCs ranging from Rs. 1 to Rs. 5 for the better-run accounts, you can see CPAs and the kick-ass end of somewhere between Rs. 10 and Rs. Rs. 50 per sale. Also do note that the conversion rates from Facebook are still lower than those from Google.

Of course, this is not where the vast ecommerce numbers are. The typical CPAs for a new merchant coming in will be around Rs. 1,000+ ranging to even in one case where I saw Rs. 2,400+. (Do the math – CPC of Rs. 12 and conversion rate of 0.5% = Rs. 2,400) Median conversion rates for travel firms are around 3% and for e-com goods delivery-based firms are around 1%+. You can do the math from here on. 🙂

I’m not sure what you mean by CPM though. Do you mean the price you buy display media at? Well, you can buy undifferentiated media in bulk from a network or a platform for as little as Rs. 10 cpm (US$0.20) if you know where to look. The super-premium end of this business is around the Rs. 200+ cpm (US$ 4.00) mark when you’re buying.

Again, no copout meant – but it’s a huge range – so you should know exactly what you’re buying, where and why. Along with your ability to know where and how to negotiate – and when to close. You get lower rates in the last month of the sales team’s billing quarter, when they’re in a hurry to do their quotas – and the prices vary by as much as 100% between a similar buy in April, for instance, and in June.

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