What is Cost per acquisition (CPA)?
Cost per Acquisition (CPA): A digital marketing metric that calculates the total cost of acquiring one paying customer on a campaign or channel level.
Cost per Acquisition (CPA): A digital marketing metric that calculates the total cost of acquiring one paying customer on a campaign or channel level.
Introduction: Cost per Acquisition (CPA), also known as Cost per Action, is a digital advertising metric that measures the aggregate cost to acquire one paying customer on a campaign or channel level. It is a crucial metric for businesses and marketers to evaluate the effectiveness of their advertising efforts and to ensure that the cost of acquiring new customers does not exceed the value they bring to the business. CPA is widely used in affiliate marketing, paid advertising, and other digital marketing strategies where the focus is on converting engagements into transactions.
Calculating CPA:
CPA=Total Cost of Campaign / Number of Acquisitions
Importance of CPA:
Strategies to Reduce CPA: