SEA / Paid Search

CPA

CPA (cost per acquisition) is what you pay, on average, for one conversion.

In detail

Divide spend by conversions. Its usefulness depends entirely on the conversion being real — a form submission that never becomes a customer flatters the number.

Target CPA only makes sense against customer value.

Example

€1,200 spend and 24 qualified leads gives a CPA of €50.

Why it matters

It is the clearest link between advertising spend and business outcome.

Common mistakes

  • Counting low-quality actions as conversions.
  • Setting a target CPA without knowing customer value.

Related questions

Related articles

Related guides

  • The Complete Google Ads & SEA Guide
    Guide

    Paid search from first principles: account structure, keywords and match types, ads, landing pages, bidding, tracking and profitability.

Related terms

  • ROAS

    ROAS (return on ad spend) is the revenue generated per unit of advertising spend.

  • Conversion Tracking

    Conversion tracking records the valuable actions people take after clicking an ad or visiting a page.

  • Conversion Rate

    Conversion rate is the share of visits or clicks that complete the action you care about.

Related questions

  • How much should I spend on Google Ads?

    Work backwards from value, not from a benchmark. If you know what a customer is worth and roughly how many clicks it takes to win one, you know the most you can afford per click.