Glossary B2B
Cost per Acquisition (CPA)
Cost per Acquisition (CPA) is a digital marketing metric that calculates the total cost of acquiring a new customer or lead through paid campaigns. It encompasses all expenses related to marketing and advertising, including ad spend, creative development, platform fees, and sales costs. CPA is commonly used in performance-based advertising, where advertisers pay only when a specific action occurs, such as a purchase, sign-up, or lead submission.
The formula for CPA is:
CPA = Total Marketing Costs ÷ Number of Conversions
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