Cost per acquisition
CPA · Total ad spend divided by the number of conversions, giving the average cost of winning a customer or a lead.
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Why it matters
Cost per acquisition shows what winning a customer or a lead costs you on average. Compared with the profit a customer brings, it tells you whether advertising pays. It is the clearest measure for businesses that collect forms, bookings or quote requests.
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Example
If a dental clinic spends 15,000 a month and gets 50 appointment requests, the cost per request is 300. If half of the requests turn into treatment and a treatment earns 5,000 on average, the advertising is profitable.
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Common mistake
Ignoring lead quality to push the cost per lead down. Cheap leads that never become customers end up costing more than pricier leads that turn into sales.
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Related terms
Related services and guides
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