Calculating Cost Per Acquisition (CPA ) measures the cost incurred to acquire a new customer through a specific campaign. It's important for assessing the efficiency of advertising efforts and optimizing budget allocation.
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How to Calculate CPA?
CPA (Cost Per Acquisition) calculation involves dividing the total cost of your advertising campaign by the number of acquisitions (sales, sign-ups) it generates. For example, if you spend $5,000 on a campaign that results in 100 acquisitions, your CPA would be $5,000 / 100 = $50.
CPA Calculation
CPA formula
CPA = Total Cost of Campaign / Number of Acquisitions
