CPA: Cost Per Acquisition

Definition of

CPA: Cost Per Acquisition

CPA is a pricing model in which advertisers pay for each successful acquisition of a customer.

Detailed Description of

CPA: Cost Per Acquisition

Cost per acquisition (CPA) is a metric used in product management to measure the cost of acquiring a customer or user. It is calculated by dividing the total cost of acquiring a customer or user by the number of customers or users acquired. CPA is an important metric for product managers to track, as it helps them understand how much they are spending to acquire customers and users, and how effective their marketing and advertising efforts are. CPA can also be used to compare different marketing channels and strategies, allowing product managers to make informed decisions about where to allocate resources.

Examples of

CPA: Cost Per Acquisition

Let's say you own an online store that sells shoes. You decide to run a CPA campaign to increase sales. You set up an ad on Google Ads and agree to pay $10 for every customer who purchases a pair of shoes from your store. In this case, your CPA is $10. If you get 100 customers to purchase shoes from your store, then your total cost for the campaign would be $1,000 ($10 x 100).

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