Cost Per Acquisition
The average cost to acquire one conversion, calculated by dividing total ad spend by the number of conversions.
What Cost Per Acquisition means
Cost per acquisition (CPA), also called cost per action, is a critical metric measuring the average cost of achieving one conversion. It's calculated by dividing total campaign spend by the number of conversions. CPA is closely tied to compliance — misleading ads may achieve a low initial CPA but generate chargebacks, refund requests, and customer complaints that inflate true acquisition costs. Platforms offer CPA bidding strategies (target CPA, cost cap) that optimize delivery toward a specified cost goal. When evaluating CPA, compliance teams should consider the quality of conversions alongside quantity — acquisitions driven by deceptive ad practices may appear cost-effective in the short term but create long-term brand and legal risks.
Related terms
Conversion
A desired action completed by a user after interacting with an ad, such as a purchase, sign-up, or download.
Return on Ad Spend
The revenue generated for every dollar spent on advertising, calculated as revenue divided by ad spend.
Cost Per Click
The amount an advertiser pays for each click on their ad in a pay-per-click advertising model.
Cost Per Mille
The cost per thousand impressions, a standard pricing model for display and video advertising.