CPA: Cost Per Acquisition
Cost Per Acquisition (CPA) measures how much it costs to generate one conversion, such as a sale, a lead, or a signup.
It is the ultimate metric for measuring the immediate ROI of a specific ad campaign. While other metrics track interest, CPA tracks the bottom line.
Calculation: Total Ad Spend / Number of Conversions = CPA
Example: €300 spend and 10 purchases equals €30 CPA.
Frequently Asked Questions
This is an automated bidding strategy where you tell an ad platform the maximum you are willing to pay for a sale, and the AI optimizes your bids to hit that target.
This often happens in subscription models where you expect to make the money back over several months. If your LTV is high, a high initial CPA can still be profitable.
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