Cost per acquisition (CPA)

What is "cost per acquisition" (CPA)?

Cost per acquisition (CPA) is a metric used in website personalization, traffic, and lead generation. It is the cost incurred for acquiring a new customer or converting a lead into a customer. It is a key metric used to measure the efficiency of digital campaigns, as it allows marketers to determine their return on investment (ROI).

CPA is one of the most important metrics in digital marketing and is often used to measure the success of campaigns. It is important to understand what CPA is and how it is calculated in order to get the best results from your digital campaigns.


Calculating the cost per acquisition

CPA is calculated by taking the total cost of a campaign or strategy and dividing it by the number of customers acquired or leads converted. This metric can be used to measure the success of different campaigns and strategies over a certain period of time. It can also be used to compare the cost of acquiring customers from different channels.

For example, if you spend $10,000 on a campaign and acquire 100 customers, your CPA would be $100.

Types of Cost per Acquisition

Cost per acquisition (CPA) is an important metric used to measure the efficiency of digital campaigns. There are two different types of CPAs: fixed and variable.

Fixed Cost per Acquisition

A fixed CPA is a fixed fee that is charged for each new customer acquired or lead converted. This type of CPA is often used when digital campaigns are focused on acquiring a certain number of new customers or leads.

Variable Cost per Acquisition

A variable CPA is a cost that is based on a percentage of the customer’s purchase or the lead’s conversion. This type of CPA is often used when digital campaigns are focused on increasing the number of customers or leads that are converted into customers.

GO BACK