Cost per acquisition, or “CPA,” is an ecommerce marketing metric that measures the total cost to acquire a paying customer at a campaign or channel level.
CPA is a fundamental measure of eCommerce attorney email list marketing success, often differentiated from customer acquisition cost (CAC) by its granular application.
cpc
Total campaign cost
_________________ = CPA
Conversions
Many marketing metrics are indicators of success, such as conversion rate and visits (or “sessions”).
Cost per acquisition, on the other hand, is a financial metric used to directly measure the revenue impact of marketing campaigns.
AOV (Average Order Value) and LTV (Customer Lifetime Value), online businesses can determine an acceptable CPA.
Conversion rates are a leading indicator of marketing success. But CPA provides the business perspective to measure campaign success.
Cost per acquisition is used in the following paid marketing media:
PPC.
Affiliate.
Display.
Social Media.
Content marketing.
It can also be used for SEO , email, and other platforms that do not cost direct advertising but still require overhead (labor, indirect costs such as content production, etc.).
Conclusion on CPC and its associated terms
There is no universal benchmark in eCommerce for “good” CPA.
Every online business has different margins, prices, and operating expenses.
The most important factor in determining a desired CPA is understanding these factors , which allows a business to calculate how much they can reasonably pay to purchase customers.
CPC, on the other hand, remains one of the safest ways to target a targeted audience because it comes with a high level of flexibility, accountability, and control.
While CPM is very beneficial for publishers, it is not so good for advertisers since impressions do not translate into sales.
In any case, applying any of these metrics is a decision that must be based on your objectives as a company and on the strategy you are developing.
This is where we end with the information about “What is CPM, CPC and CPA: Discover their meaning” We hope it has been useful. Remember that at GenWords we are experts in digital marketing and consulting. Contact us for more information and follow us on social media so you don’t miss out on any news. In addition, you can leave us a comment to let us know your opinion on this particular topic.