CPA(CPA)
Advertising
Advertising
CPA is ad cost per conversion: total spend divided by conversions, such as enquiries or purchases.
What counts as an acceptable CPA follows from your margin and your lead-to-customer rate. If a lead costs €60 and one in four becomes a customer worth €900 in margin, that's a healthy ratio.
Only compare CPA across channels that measure the same thing. A 'lead' that is a newsletter signup does not belong in the same chart as a quote request.
Related terms
- Customer acquisition costCAC is the total cost of winning one new customer: ad spend plus the people, tools and hours involved.
- ROASROAS is revenue generated by your ads divided by what you spend on them. A ROAS of 4 means €4 revenue per euro spent.
- ConversionA conversion is an action you defined as valuable: an enquiry, purchase, download or phone call. The conversion rate is the share of visitors who take it.