Cost Per Acquisition (CPA)

The cost per acquisition, also known as CPA, is a marketing metric that determines how much money it takes to bring in a new client via a certain advertising campaign or marketing channel. It takes into account all of the costs that are related with the campaign, such as the costs of labor and advertising, as well as any other expenditures that may arise. The formula for calculating CPA is straightforward: divide the total cost of the campaign by the number of conversions. A conversion is defined as a desired action carried out by a customer, such as making a purchase or filling out a form. CPA is an important metric for evaluating the effectiveness and efficiency of marketing campaigns. It assists marketers in determining which channels or campaigns are generating the most valuable leads at the lowest cost, making it one of the most important metrics for evaluating the effectiveness and efficiency of marketing campaigns.