Updated
Cost per acquisition (CPA) is the average ad spend needed to win one conversion, such as a purchase, an enquiry or a signup. In Google Ads it appears as “Cost / conv.”.
How do you calculate CPA?
CPA = ad spend ÷ number of conversions. If €2,000 of spend brings 40 enquiries, CPA is €50.
Target CPA bidding
With target CPA bidding, Google sets bids automatically to win conversions at your chosen average cost. It needs reliable tracking and a steady volume of conversions each month. For online stores with very different basket sizes, target ROAS is often the better choice.
What is a good CPA?
It depends on what a customer is worth. A business earning €3,000 per contract can afford a far higher CPA than a store with a €40 basket. Look at customer lifetime value too: if customers come back, the first conversion can cost more.
How to lower CPA
- Raise the conversion rate of your landing page
- Exclude irrelevant searches
- Improve Quality Score to lower your CPC
- Move budget to the campaigns with the best results
Digitalman optimizes campaigns for cost per lead or order. Learn more on our Google Ads agency page.
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