Cost Per Acquisition (CPA)

What is Cost Per Acquisition (CPA)?

CPA divides total cost by conversions in a period. It answers whether paid channels can scale profitably.

Example: You spend $4,000 and earn 80 leads—CPA is $50. If a customer is worth $600 and 20% close, economics may work.

Why Cost Per Acquisition (CPA) matters

CPA matters because it ties spend directly to outcomes; without it, teams optimize for cheap clicks that never convert. CPA against margin and lifetime value decides whether channels can scale.

How Cost Per Acquisition (CPA) works in digital marketing

Track CPA by campaign and creative, set caps, and compare to customer lifetime value and margin.