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MJ Marketing
Metrics & KPIs

Cost per Acquisition (CPA)

In short

CPA (Cost per Acquisition) indicates how much you pay on average to achieve one conversion — a purchase, inquiry, or signup.

In-depth guideGoogle Ads Bidding Strategies: Which One Actually WorksRead the article

What is CPA?

CPA = Total Cost ÷ Number of Conversions. Example: $1,000 ad spend ÷ 50 inquiries = $20 CPA.

Why CPA Matters

CPA directly connects ad spend to business results: "What does a new customer cost me?"

Good vs. Bad CPA

Depends on Customer Lifetime Value. Rule of thumb: CPA should be max 25-33% of CLV.

Lowering Your CPA

  • Improve conversion rate (better landing pages)
  • Increase Quality Score (lower click costs)
  • Add negative keywords (eliminate wasted spend)
  • Use Target CPA bidding strategy

Further resources

Frequently Asked Questions

Depends on your industry and Customer Lifetime Value. Rule of thumb: CPA should be max 25-33% of expected customer value.

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