CPA is cost per acquisition or cost per action, a metric showing how much it costs to generate a defined conversion.
Example of CPA
Example: If a paid search campaign spends $1,500 and generates 30 booked consultations, the CPA is $50 per consultation. Whether that is good depends on close rate, average deal value, and profit margin.
Why CPA matters
It matters because strategy keeps channels from competing with each other. When this concept is clearly defined, the team can connect budget, audience, creative, offer, tracking, and reporting to revenue instead of chasing disconnected metrics.
Related terms
Frequently Asked Question
What does CPA mean?
CPA means cost per acquisition or cost per action, a metric showing how much it costs to generate a defined conversion.