Cost Per Acquisition (CPA)

An online advertising pricing model where the advertiser pays for a specified acquisition - for example a sale, click, or form submit (e.g., contact request, newsletter sign up, registration etc.).

What is Cost Per Acquisition (CPA)?

Cost Per Acquisition (CPA) is a marketing metric that calculates the average cost a business incurs to acquire a new customer through its advertising and marketing campaigns. It is derived by dividing the total cost of the marketing efforts by the number of new customers acquired during a specific period. CPA provides valuable insights into the efficiency and effectiveness of a company's marketing strategies, helping to determine the return on investment for each customer acquired. By tracking CPA, businesses can evaluate the success of their campaigns and make data-driven decisions to optimize their marketing budgets and improve their customer acquisition efforts. Additionally, CPA can be used to compare the performance of different marketing channels and campaigns, allowing businesses to allocate resources to the most cost-effective and high-converting channels. Monitoring CPA enables businesses to fine-tune their marketing tactics, enhance customer acquisition strategies, and ultimately maximize their profitability by acquiring customers at the lowest cost possible.