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Cost per acquisition (CPA)

Cost per acquisition (CPA), also known as cost per action, pay per acquisition (PPA) is an online advertising pricing model where the advertiser pays for a specified acquisition – for example a sale, click, or form submit (e.g., contact request, newsletter sign up, registration etc.) The fee for such services is agreed-upon before the advertising begins. Not all media outlets will negotiate CPA pricing.

What is CPA in Google AdWords?

CPA bidding is a method of paid advertising that allows you to tightly control your advertising spend. Rather than paying Google for every time someone clicks on one of your ads (as with CPC bidding), CPA bidding only requires you to pay for each conversion, a metric you define yourself when you set up each campaign.

How is the cost per acquisition calculated AdWords?

The average amount you’ve been charged for conversion from your ad. Average cost-per-acquisition (CPA) is calculated by dividing the total cost of conversions by the total number of conversions.

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