CPA – Cost per Acquisition

Definition

CPA (Cost per Acquisition) measures the average cost required to achieve a desired action (conversion) – e.g., a purchase, registration, or download. CPA connects traffic costs directly with business outcomes and is therefore one of the most important control metrics in performance marketing.

Formula

Example

An online shop spends €2,000 on Google Ads and generates 40 orders. The CPA is €2,000 / 40 = €50 per order. If the average order value is €120, the campaign is profitable.

Optimization Tips

Optimize your landing pages for higher conversion rates. Use smart bidding strategies like Target CPA. Exclude underperforming keywords and placements. Improve audience targeting through remarketing and lookalike audiences.