Cost Per Acquisition (CPA), sometimes referred to as Cost Per Action, is a financial metric used in advertising to measure the aggregate cost to acquire one paying customer or achieve a specific Conversion (e.g., a sale, a lead). It's calculated by dividing the total cost of an advertising Campaign by the number of acquisitions or conversions generated.
CPA = Total Cost of Campaign / Number of Acquisitions (or Conversions)
CPA is a crucial metric for evaluating the profitability and efficiency of advertising efforts. Advertisers often aim to lower their CPA while maintaining or increasing conversion volume. It's closely related to Cost Per Lead (CPL) but CPL is specific to leads.
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