CPA (cost per acquisition, also called cost per result or cost per action) is how much you pay on average for one conversion, a purchase, lead or sign-up. It’s ad spend ÷ number of conversions.
How to calculate CPA
CPA = ad spend ÷ conversions
₹20,000 spent for 100 leads = a CPA of ₹200.
Why CPA changes
CPA depends on three numbers:
CPA = CPM ÷ (1,000 × CTR × conversion rate)
So CPA rises when reach gets more expensive (CPM), fewer people click (CTR) or fewer clickers convert. Read the full guide: Why did my Facebook CPA increase?
Target CPA
Your target CPA should sit below what a customer is worth to you. Spotnxt lets you set an optional target cost per result and flags cost above target as soon as it happens.
Related: Read the full guide → · All glossary terms →