Metrico glossary
Cost per Acquisition (CPA)
CPA measures how much advertising spend is associated with each measured acquisition or conversion.
Definition
CPA divides spend by the number of acquisitions in the selected source and scope. The word acquisition must be defined: it can mean a purchase, lead, new customer, subscription, or another conversion event. Provider CPA and store-derived new-customer acquisition cost are not automatically the same metric.
Formula
CPA = ad spend ÷ measured acquisitions
Example
$2,000 of spend ÷ 50 attributed purchases = $40 CPA.
What to remember
- Define the conversion event before comparing CPA.
- A low CPA can still be unattractive when contribution is weak.
- Attribution windows and modeled conversions can change provider CPA.