![]() ![]() CPA = the total cost of a campaign / number of conversions Still unclear? Many marketers, especially those with eCommerce or SAAS business models, flocked to CPA bidding for the ability to pay for a direct result and easily compare performance across channels. Often, you’ll have the choice between bidding on a CPC (cost per click), CPM (cost per 1,000 impressions), or CPA (cost per acquisition) basis. You’ve likely seen CPA as an option when bidding on Facebook, Google, or another ad network. ![]() Cost per acquisition is also referred to as cost per action or CPA - but don’t get confused with diction, these three terms all mean the same thing! The conversion can be one of many things, but in most cases, it will be a sale, a click, a form submission, or an app download. What exactly is Cost Per Acquisition (CPA)?Īt the most basic level, cost per acquisition is a marketing metric that measures the aggregate cost of a customer taking an action that leads to a conversion. Either way, this guide will help you more effectively understand what CPA is, why it matters, and how to use it to put your marketing dollars into the right channels. Maybe you already have a great understanding of cost per acquisition, or maybe you’re hearing it for the first time. Calculating an effective CPA is central to any robust customer acquisition strategy and critical to the long-term sustainability of your company. Without a working understanding of CPA, you risk overpaying for your customers or paying more to acquire a customer than what they’re actually worth to your company. There are a lot of acronyms to remember in online advertising, but one of most critical measurements you must know and understand is cost per acquisition (CPA).
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