Digital Gurus

CPA (cost per acquisition)

Cost per acquisition is what you spend, on average, for each conversion, such as an enquiry, a booking or a sale.

Reviewed by Chris Day, COO Last reviewed

2% clicked

4.2% enquired

Impressions
12,000
Clicks
240
Enquiries
10
CPM
£25 per 1,000 impressions
CPC
£1.25 per click
CPA
£30 per enquiry

All three come from the same £300 of spend. What changes is which moment you pay for.

The same campaign priced three ways.

What it means for your advertising

CPA connects spend to results: total cost divided by conversions. When the conversion is an enquiry, it's the same as cost per lead.

For a service business it's usually the figure most worth watching, because it tells you what a new enquiry costs. Set it against what a customer is worth to you (ROAS) to see whether a campaign pays.

Some channels let you bid for conversions directly, with the platform adjusting bids to hit a target CPA.

An example

Java Roasters spent £300 and received 10 enquiries. £300 ÷ 10 = £30, so the CPA was £30 per enquiry.

Java Roasters is a fictional business, and its figures are illustrative.

How we handle it

We agree what a good CPA looks like for your business when we plan, then optimise towards it by moving budget to the searches, audiences or cards that bring enquiries more cheaply. Our pricing page shows what a campaign costs.

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