« Back to Glossary Index

What is CPA ?

CPA is an e-commerce advertising term that stands for Cost per Acquisition. It has different significance depending on the actions that are meant to be tracked.

One common application of CPA is measuring the aggregate cost to acquire one paying customer. This is calculated on a campaign or channel level. Unlike metrics such as conversion rate, CPA is a financial metric. It measures how much revenue has been earned through a marketing effort, effectively measuring its success. If the CPA is low, the campaign has been effective. For consumer package goods companies, CPA is a critical metric that determines the profitability of their marketing efforts. The lower the cost per acquisition (CPA), the higher the return on investment (ROI) of their marketing campaigns. An important indicator for assessing the success of an advertising campaign is a high CTR. So, what is a good CTR in CPA advertising? The answer is influenced by a number of variables, such as ad format, and the platform where the ad is displayed

CPA can be tracked through the use of UTM and custom links, CRM software, surveying customers to find which channel they used, or exporting and analyzing raw campaign data.

CPA can also signify Cost per Action. In this case, it’s a payment model in which the advertiser only pays a fee when the user performs an action (e.g. signs up for the email list, buys a product, etc.)

An important factor with CPA is search engine optimization. If a website receives organic traffic through SEO, the CPA will be much lower.

The financial CPA is calculated by dividing the acquisition cost by conversions (CPA = cost/conversions) to show the final cost per acquisition.


« Back to Programmatic Glossary Index

Food Targeting Categories

Since 2008, Gourmet Ads has been the global leader in food-focused advertising, specializing in Contextual Targeting. Discover a wide range of Food Targeting Categories for your next advertising campaign or programmatic deals, including Alcohol, Beverage, Cuisine, Diet, Ingredient, Kitchen Appliances, Non-Endemic, Publisher, and Recipe Targeting. We ensure your brand resonates with an engaged, culinary-inclined audience, transforming advertising campaigns into deliciously successful endeavors. Experience Gourmet Ads—where your message meets the appetite of your desired market.

Let’s Get Started ! 

Let the Gourmet Ads team walk you through all the options available to ensure that your Food, Supermarket, Beverage or Kitchen advertising campaign has the best possible combination of Premium Guaranteed Inventory, Scale, First Party Data, Contextual Targeting and Programmatic Advertising elements.