CPA (Cost per Acquisition)

Definition:

A metric present in paid ad platforms that measures the cumulative costs required to acquire a new lead or customer.

Information:

Cost per Acquisition, or CPA, is calculated by dividing the overall money spent by the number of conversions for a specific time period. For instance, if a PPC account spent $1000 in one month and achieved 10 conversions, the CPA would be $100. CPA is often the preferred metric for marketers since one is paying for a direct result and provides the option to compare marketing performance across various channels.