Cost-per-Acquisition (CPA) is an essential E-Commerce metric measuring the average cost (from advertising) it takes to acquire a paying customer/a conversion.


How can we use CPA?

CPA is measured by total campaign cost / total number of conversions to give you insights into the success of your online advertising campaigns. Ideally, the lower the CPA value the better the campaign is performing as you can generate more conversions for a lower ad spend 💰

Whilst you want CPA to be as low as possible there is no standard value for what a good CPA is. The value of CPA to your business should be "what price am I willing to pay for a conversion?"

Your goal for the business can dictate the importance and value of your CPA. If you were striving to maximise profits, you'd want to have a low CPA to keep your costs as low as possible. However, if you wanted to increase brand exposure then it may be worth sacrificing some profit for more conversions with potentially a higher value.

Your CPA can be set at a certain level but this may limit the number of conversions this can drive. Regardless of your goals, or stage of the business, CPA is a brilliant tool that can be used to analyse your campaigns and help achieve the business results you want 📈

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If you would like to learn more about Cost-per-Acquisition and the services we offer please speak with a member of our team and contact us at support@campaignhero.ai and we'll be sure to help 🚀

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