Cost per acquisition (CPA) is a performance-based pricing model in which the advertiser pays a fixed amount for each customer acquisition that is generated through an ad campaign. CPA is typically used in pay-per-action (PPA) or cost-per-action (CPA) advertising, in which the advertiser only pays for specific actions taken by the user, such as making a purchase or filling out a form.
CPA is calculated by dividing the total cost of the ad campaign by the number of acquisitions generated by the campaign. For example, if an advertiser spends $1,000 on an ad campaign and generates 100 acquisitions, the CPA would be $10.
CPA can be a useful metric for advertisers to track, as it allows them to understand the cost of acquiring new customers and to optimize their ad campaigns to reduce cost and improve return on investment (ROI). However, it is important to consider the quality of the acquisitions generated by the campaign, as acquiring low-quality customers may not be as valuable as acquiring high-quality customers.