Cost Per Acquisition (CPA)
The cost to acquire one customer or conversion.
Definition
Cost Per Acquisition (CPA) measures how much you spend in advertising to get one conversion. It's the most important metric for lead generation and any campaign where conversions have similar values. Target CPA bidding automates bids to hit your desired acquisition cost.
CPA = Total Ad Spend / Total Conversions
Industry Benchmarks
Varies by industry. SaaS: $50-200. Ecommerce: $10-50. B2B Services: $100-500.
Varies by industry. SaaS: $50-200. Ecommerce: $10-50. B2B Services: $100-500.
Practical Tips
- Know your maximum acceptable CPA based on customer value
- Account for lead-to-sale conversion rate in target CPA
- Lower CPAs aren't always better if lead quality suffers
- Use Target CPA bidding once you have 30+ conversions/month
Related Terms
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