Cost Per Acquisition

Cost Per Acquisition?

Cost per acquisition (CPA), also known as “Cost per action” is the average cost an online marketing advertisement incurs when a specific action has been made. These actions include clicks, sales, downloads, and form submissions. This digital marketing metric is the ratio between the total cost of the campaign divided by the number of  “actions” occurred.  A CPA calculation enables online advertisers to place a cost on each conversion, which allows for campaign optimization strategies as well as a more in-depth understanding of your organization’s sales and operation.

Cost Per Acquisition Pricing is used for:

• Pay-Per-Click (PPC)
• Cost-Per-Action (CPA)
• Social Media Marketing
• Affiliate Marketing
• Display Marketing

Tracking Cost Per Acquisition

You can track CPA through the various mediums with a variety of methods including:

• Implementing a CRM system
• Include additional questions on forms that can link a conversion to your CPA campaign
• Using promotion codes for CPA specific links
• Using UTM parameters to generate trackable link codes