What is cost per acquisition (CPA)?
Cost per acquisition is the average amount you spend on ads to get one conversion, such as a sale, call or lead.
Cost per acquisition, or CPA, tells you what each result costs. To find it, divide your total ad spend by the number of conversions. If you spend 500 dollars and get 10 booked calls, your CPA is 50 dollars. Some platforms also let you bid by CPA, which tells the system to aim for a target cost for each conversion.
Why it matters for your business: CPA tells you if your ads make money. If a new customer is worth more to you than it costs to win them, the ads are paying for themselves.
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