Cost Per Acquisition (CPA)

Cost Per Acquisition (CPA) is a marketing metric that measures the average amount spent to gain a new customer or sale. It’s calculated by dividing the total marketing expenses by the number of customers acquired during a specific period. For example, if you spend $1,000 on advertising and acquire 10 customers, your CPA is $100. CPA helps businesses evaluate the efficiency of their marketing efforts, ensuring they can attract customers profitably. Lower CPA indicates more cost-effective marketing, while higher CPA suggests it may be time to optimize campaigns or strategies.