CPA (Cost Per Acquisition) is the average ad spend required to produce one conversion. Spend 1,000 TL and take 20 orders, and your CPA is 50 TL. Your target CPA has to stay below the gross profit you make per unit.
CPA is more useful than ROAS in businesses where sale value varies, because it reduces performance to a single number. But it misleads when average order value swings widely: a 50 TL CPA is excellent on a 200 TL order and a disaster on a 60 TL one. In service businesses CPA is usually measured per form fill and has to be read together with the lead-to-sale rate.
CPA = Total ad spend ÷ Number of conversions
For a brand making 90 TL of gross profit per unit, a 50 TL CPA is profitable and a 110 TL CPA loses money.
CPA is more useful than ROAS in businesses where sale value varies, because it reduces performance to a single number. But it misleads when average order value swings widely: a 50 TL CPA is excellent on a 200 TL order and a disaster on a 60 TL one. In service businesses CPA is usually measured per form fill and has to …
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