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