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.