What is a CPA (Cost Per Acquisition)?
Formula: Total Campaign Cost / Number of Acquisitions
Tracks the cost to achieve any desired conversion action, whether it's a purchase, sign-up, or download. For example, if an e-commerce store spends $1,000 on a Facebook ad campaign that generates 50 purchases, the CPA is $20. Digital marketers use CPA to optimize ad campaigns across platforms like Google Ads and Facebook. Companies like Wayfair and Booking.com carefully monitor CPA across different marketing channels.
Optimize CPA through audience targeting, conversion rate optimization, and ad creative testing. Focus on landing page optimization, bid management, and campaign performance analysis.
CPA is influenced by targeting accuracy, ad relevance, landing page quality, and competition levels. Market conditions and seasonal factors also impact acquisition costs.
Reduce CPA by improving targeting, optimizing ad spend, and enhancing conversion paths. Test different channels and strategies to find most cost-effective acquisition methods.
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