CPA, or Cost Per Acquisition, is an essential metric in digital advertising that determines how much it costs to acquire a customer through an advertising campaign.
It is usually used by companies to evaluate the efficiency of their campaigns, especially when the goal is to convert visitors into customers. Unlike other advertising metrics that focus on visibility, CPA focuses on the end result: conversion.
CPA is an important KPI that allows you to measure the performance of a campaign in terms of effectiveness and profitability. Thus, a company may be willing to pay more for a CPA if it knows that this acquisition will generate significant value in the long term.
CPA = Total campaign budget/ Number of acquisitions