Definition
CPA is what you pay in ad spend to get one conversion, such as a purchase or lead. It is the core efficiency metric for performance campaigns.
CPA explained
To be profitable on the first order, CPA must be below the gross profit of an order. Brands with strong repeat purchase rates sometimes accept a higher CPA because lifetime value covers it.
Formula
CPA = spend ÷ conversions
Example
Spending 900 dollars to get 30 purchases is a CPA of 30 dollars.
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