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Glossary

CPA

Also called cost per acquisition, cost per action, cost per result.

Cost per acquisition: ad spend divided by the number of conversions.

CPA = spend ÷ conversions. Name the conversion: cost per lead, cost per booked call, cost per purchase. A CPA is only useful when everyone knows which one it is.

Compare CPA with what a conversion is worth. For leads, that is the lead-to-sale rate times the average sale. For purchases, it is margin per order, and over time the customer's lifetime value.

Related terms

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