Cost Per Acquisition (CPA)

Definition of Cost Per Acquisition (CPA)

The cost of acquiring a new customer or conversion.

Explanation of Cost Per Acquisition (CPA)

Cost per acquisition (CPA) is a metric used to measure the cost of acquiring a new customer or lead through marketing efforts. It is calculated by dividing the total marketing spend by the number of conversions or acquisitions. CPA helps businesses understand the efficiency and effectiveness of their marketing campaigns. A lower CPA indicates that the campaign is cost-effective and successfully driving conversions. Businesses use CPA to set budgets, optimize ad spend, and evaluate the return on investment (ROI) of their marketing strategies. By monitoring and improving CPA, companies can achieve better financial performance and growth.

This dictionary entry was written by

Per-Gulbrand Peter Braathen

With a foundation in doctoral-level research, Per-Gulbrand Peter Braathen is a seasoned expert in the areas of marketing, branding and communication. His proficiency extends to marketing management, branding and communication strategy. Braathen's experience is underscored by his rich background from various industries, including entertainment. A distinguished alumnus of the USC Marshall School of Business, Braathen boasts a Master of Science in Marketing, complemented by a Graduate Certificate in the Business of Entertainment from the USC School of Cinematic Arts as well as two undergraduate Bachelor degrees from the esteemed University of Southern California.