Definition The average cost of getting one conversion, such as a sale, sign-up or lead, calculated as total spend divided by the number of conversions.
Also called CPA, Cost per acquisition
Example €1,000 spent for 40 sales gives a CPA of €25.
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Why it matters It shows whether paid marketing is affordable.
Where it is used Paid marketing reports and campaign budgets.
How to calculate it Ad spend ÷ number of conversions
Worked example €1,000 spent for 40 sales gives a CPA of €25.