Cost Per Acquisition (CPA) is a digital marketing metric that measures the total cost to acquire a single paying customer or completed action from a specific campaign or channel. It calculates the direct financial cost of driving a specific conversion, making it a critical indicator of marketing efficiency and profitability.

Example: If you spend $1,000 on an ad campaign and it results in 20 sales, your CPA is $50.

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• What Counts as an "Acquisition": Depending on your business model, an acquisition can be a completed purchase, a form submission, an app download, a free trial sign-up, or a subscription.

• CPA vs. CAC: CPA typically measures the immediate cost of a single marketing campaign or channel. Customer Acquisition Cost (CAC) is a broader business metric that factors in sales salaries, software, overhead, and total marketing efforts combined.

• Why It Matters: A low CPA relative to your Customer Lifetime Value (LTV) indicates high campaign efficiency, ensuring that revenue generated per user exceeds the price paid to acquire them.

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