Knowledge base · Advertising
CPA
CPA stands for Cost Per Acquisition: what it costs to win one customer, order or sign-up.
CPA is the multiplication of CPC and conversion rate: everything before it. For many businesses it is the most honest advertising figure, because it translates marketing directly into cost per result.
What counts as a good CPA depends on your margin and your customer value. A forty-euro CPA is disgraceful on a thirty-euro product and a bargain on a customer who returns for years.
That is why CPA belongs next to customer lifetime value. Together they decide how hard you may grow without buying yourself empty.
How we do it
We always weigh CPA against customer value over time, not against the first order alone.
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