Paid media basics
Cost per acquisition (CPA)
Ad spend divided by the number of conversions it produced, where a conversion is the action the campaign is set up to drive.
What it is
The conversion can be a lead, a sign-up or a purchase, so a CPA means something when it is read next to the event it counts.
Why it matters
For lead generation and e-commerceIt is the everyday efficiency number of most accounts and the input to target CPA bidding.
How it is measured
Formula
CPA = spend / conversionsDivide spend by conversions for the same period and campaign.
A common mistake
A low CPA on a shallow event can hide a high cost per customer. Teams that sell through a pipeline often track cost per qualified lead as well.
Read the evidenceThe machine hits the target you give it All terms