Glossary
Cost Per Acquisition (CPA)
Cost per acquisition, or CPA, is how much you spend on ads to get one conversion, such as a booking or a sale.
Formula
CPA = ad spend ÷ conversions
Example
Spending $1,500 to get 30 booked appointments means a CPA of $50 per booking.
How to read it
Your target CPA should come from what a customer is worth to you, not from an industry average.
Why it matters
CPA is more useful than cost per lead when leads vary in quality, because it measures what you actually want.
Common mistakes
- Defining the 'acquisition' as a click or form fill instead of a booking or sale.
- Cutting campaigns with a higher CPA that bring more valuable customers.
- Comparing CPA across offers with different prices.
How to improve CPA
- Define the acquisition as a booking or sale, not a click.
- Improve conversion at each funnel step.
- Move budget toward the campaigns with the lowest cost per sale.
- Use bidding strategies that optimize for the conversion you care about.
Sources: Google Ads Help: About Target CPA bidding
Related: Ad budget calculator
Related terms
Cost Per Lead (CPL)Cost per lead, or CPL, is how much you spend on ads to get one lead.Customer Acquisition Cost (CAC)Customer acquisition cost, or CAC, is the total cost of winning one new customer, including ads and the other sales and marketing costs involved.ROAS (Return on Ad Spend)ROAS, or return on ad spend, is the revenue your ads bring in for every dollar you spend on them.