Cost Per Acquisition (CPA)

Definition:
CPA is the average amount spent to acquire a single conversion (e.g., lead, purchase). It’s used to evaluate campaign efficiency.

Formula:
CPA = Total Spend / Total Conversions

Why it matters:
Lower CPA means better efficiency. High CPA suggests overspending or poor targeting, and is often compared to a target value or customer lifetime value (LTV).

Best practices:

• Track CPA at campaign, ad group, and creative levels

• Adjust bids or creatives based on CPA trends

• Test audiences to lower acquisition cost