Cost Per Acquisition (CPA)

Cost per acquisition (CPA) is a metric that measures the average cost of acquiring a new customer or sale. CPA is calculated by dividing the total cost of marketing and advertising by the number of new customers or sales generated. For example, if a company spends $100 on marketing and advertising, and this results in two new customers, then the CPA would be $50. CPAs are used to assess the effectiveness of marketing campaigns and to compare different acquisition costs.