CPA is the cost of a predefined customer action through a Google Ads campaign.
Google Ads CPA
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Consider an e-commerce company running a Google Ads campaign to drive online purchases. The company spends $3,000 on the campaign, and it results in 600 purchases.
CPA (Cost Per Action) in this context refers to the cost per purchase.
CPA = Total Cost of Campaign / Number of Actions (Purchases)
CPA = $3,000 / 600
CPA = $5
This means the company spent $5 for each purchase made through the Google Ads campaign. By analyzing this metric, the company can assess the effectiveness of their advertising spend and make informed decisions to optimize future campaigns.