Cost per Action (CPA) – also called cost per acquisition – measures how much you spend to get a single conversion (like a sale, signup, or lead). It helps you understand the real ROI of your campaigns.
CPA = Total Ad Spend ÷ Number of Conversions
For example, if you spend $500 and get 25 conversions, your CPA is $20.
Knowing your CPA helps you compare performance across channels and campaigns. It shows whether your marketing efforts are profitable or need optimization.
Your CPA depends on factors like:
Improving these areas can reduce your CPA significantly.
It varies by industry and goal. The best CPA is one that keeps your customer acquisition cost lower than your customer lifetime value – ensuring sustainable profit.
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