COST PER ACQUISITION (CPA) DEFINITION AND FORMULA

Find below Cost Per Acquisition (CPA) definition and the correct formula to calculate CPA by eDigital.

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COST PER ACQUISITION (CPA) DEFINITION

Cost per Acquisition (CPA) Definition: The cost of acquiring a new customer.

COST PER ACQUISITION CPA FORMULA

Cost Per Acquisition (CPA) formula: Total Digital Marketing Channel Costs / Total New Sales from that Channel.

RELATED: THE ONLY  12 DIGITAL MARKETING METRICS YOUR BOSS CARES ABOUT

WHY COST PER ACQUISITION (CPA) IS AN IMPORTANT TO TRACK AND MEASURE

  • One of my top favourite digital marketing metrics.
  • It is a bottom line metric that shows you which of your digital marketing channels are actually producing conversions (actual sales)
  • Attribution modelling is key as to understand other non-converting channels might help other channels to bring new sales.

TIPS WHEN CALCULATING, MEASURING AND TRACKING COST PER ACQUISITION (CPA)

  • Calculate this CPA per Digital Marketing Channel: SEO, SEM (Adwords), Social Media, Affiliates, Email Marketing, Display Advertising, etc.

 



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COST PER ACQUISITION (CPA) DEFINITION AND FORMULA

was written by…

mauricio escobar eDigital photo close up circle digital marketing consultant seo expert sydney speaker social media trainer instructor

Mauricio Escobar is a Digital Marketing Specialist (Masters in Marketing), Certified Facebook/Adwords Professional, Certified SEO Consultant, Top Linkedin Influencer (6k connections), StartUp Investor, Writer, International Speaker. 15+ years experience optimising Digital Marketing Campaigns. Worked for top brands such as Realestate.com.au, News Limited, The Athletes Foot, Thrifty, NSW Government. Mauricio also trains marketers via Strategy WorkshopsTraining Sessions. His popular Digital Marketing Plan & Social Media Plan templates downloaded by thousands. Mauricio travels the world (37 countries visited) while teaching Digital Marketing or completing creative photography briefs and conceptual photography assignments. Mauricio speaks three languages, football fan, latin dancer. Subscribe to Mauricio’s e-newsletter connect on LinkedIn Instagram Facebook

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By |January 20th, 2018|measurement|