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Cost Per Acquisition (CPA) is a key metric in digital advertising that measures the cost of acquiring a single customer or action. This could include a subscription, purchase, lead sign-up, or any other conversion goal. CPA helps advertisers and publishers assess the efficiency of their campaigns and optimize spending for higher returns.
The conversion rate is calculated using a simple formula:
This formula allows advertisers to determine how much they are spending to acquire each new customer or completed action. Lower CPA means higher efficiency and better returns on ad spend.
CPA provides publishers with insights into how effectively they convert visitors into paying customers or engaged users. Lowering CPA without sacrificing conversion quality can significantly boost ad revenue and profitability.
Optimizing CPA can help publishers:
If your total ad spend is $10,000 and you acquire 500 new customers, your CPA is:
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