CPA – Cost Per Acquisition
The amount it costs to get a customer to complete a desired action. A core profitability metric — if CPA exceeds gross profit, the campaign loses money.
In practice
This is the number you need to know by heart: 'how much does it cost me to acquire a new customer?' If CPA = $22 and you earn $17 — you lose money on every customer. But if their LTV is $110, it might make sense.
Common misconception
'My CPA is $14 — that's expensive.' It depends entirely. $14 on a $8 product is a loss. $14 on an $85 product is excellent.
How to fix it
Did CPA rise? Check: (1) did site CR drop? (2) did CPC rise? (3) did bounce rate rise?
Example
An electronics store: CPA was $90. Launching a dedicated landing page for each product dropped CPA to $50 within a month.
Priority
CPA is metric #1. Before checking ROAS, CTR, or CPM — check CPA.
Related terms
Keep learning. Metrics that touch the same area:
- Gross MarginFinance(Sale price - COGS) / sale price × 100. The basis for every pricing and advertising decision.
- eCommerce / Electronic CommerceMarketingAll business activity conducted online — showcasing products, ordering, payment, shipping, and post-sale service. The backbone of every online store.
- CPC – Cost Per ClickMarketingThe price an advertiser pays each time a visitor clicks the ad. Influenced by competition, Quality Score, and landing page relevance.
- CPM – Cost Per MilleMarketingThe cost of advertising per 1,000 ad impressions. A key metric in awareness-focused and brand-building campaigns.
- CAC – Customer Acquisition CostMarketingTotal marketing and sales spend divided by the number of new customers. Always compare to LTV. A healthy ratio: LTV at least 3x higher than CAC.
- ROAS – Return on Ad SpendMarketingRevenue generated divided by ad spend. A ROAS of 4 means $4 in revenue for every $1 spent on ads.
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