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Definition

What is Cost Per Acquisition (CPA)?

Cost Per Acquisition (CPA) is a financial metric that measures the cost of acquiring a customer or converting a sale. In digital marketing, CPA is often used to evaluate the effectiveness of various marketing campaigns, such as pay-per-click (PPC) advertising or affiliate marketing.

CPA is calculated by dividing the total cost of a marketing campaign by the number of conversions or sales that it generates.

For example, if a business spends $1,000 on a PPC campaign and it generates 100 conversions, the CPA would be $10. CPA is an important metric for businesses, as it helps them to understand the cost of acquiring a customer and to optimize their marketing spend.

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