Digital Marketing & Analytics
Basic

Cost Per Acquisition

Average cost to acquire one paying customer or conversion.

Formula

CPA=Total CostConversionsCPA = \frac{\text{Total Cost}}{\text{Conversions}}

Variables

CPACost per acquisition
\text{Total Cost}Total campaign spend
\text{Conversions}Number of conversions

Example

$1 000 for 25 sign-ups → CPA = $40

Did You Know?

CPA is often considered the 'north star' metric because it ties directly to revenue.

marketingcpaconversionacquisition

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Click-Through Rate

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Percentage of ad viewers who click on the ad.

Cost Per Mille (CPM)

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Cost to reach 1 000 viewers with an ad.

Cost Per Click

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Average price paid for each click on an ad.

Return on Ad Spend

Intermediate

Revenue generated for every currency unit spent on advertising.

Conversion Rate

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Percentage of visitors who complete a desired action.

Bounce Rate

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Percentage of visits where the user left after viewing only one page.