CPA, short for Cost Per Acquisition, is the cost an advertiser pays for each specific action achieved through a campaign - whether that’s a purchase, a sign-up, or any other conversion event. To calculate it, divide the total campaign cost by the number of conversions (e.g. $1,000 spent ÷ 100 purchases = $10 CPA).
A lower CPA means a more cost-efficient campaign. Optimising CPA involves refining ad targeting, testing creative variations, and adjusting bids to ensure you’re acquiring customers at the best possible price relative to their value.