What does Cost-per-Sale (CPS) measure in online advertising?

Cost-per-Sale (CPS) is a measurement used in online advertising that specifically tracks the effectiveness of a campaign in generating sales for an advertiser. When an advertisement leads to a sale, CPS quantifies the cost incurred for each actual sale made, allowing marketers to assess how efficiently their advertising spend converts to revenue.

Understanding CPS is crucial for advertisers as it helps them evaluate the return on investment (ROI) of their ad campaigns. By analyzing this metric, advertisers can make informed decisions about budgeting, ad placement, and overall strategies to enhance their sales performance. The strong correlation between advertising activities and actual sales makes CPS a vital metric for evaluating the success of direct-response advertising efforts.

Other options describe different metrics unrelated to the direct connection between advertising costs and sales revenue. For example, total impressions measure the visibility of an ad, unique visitors count the distinct individuals visiting a site, and engagement rates assess user interaction with an ad but do not directly relate to sales outcomes.