What does CPA stand for in paid search metrics?

What does CPA stand for in paid search metrics?

• A. Cost per Acquisition
• B. Cost per Action
• C. Cost per Ad
• D. Cost per Attempt

Answer: (B)

CPA measures the cost to achieve a conversion in paid search. It tells you how much you’re paying for each desired action, such as a sale or a lead. The key idea is that CPA = total spend divided by the number of conversions (acquisitions). For example, if you spend $600 and get 12 conversions, your CPA is $50 per acquisition. In many contexts you’ll see “cost per action” used synonymously because an action can be defined as the conversion event you care about. However, the standard label in paid search analytics is Cost per Acquisition, which emphasizes the goal of acquiring a customer or lead. Other options like cost per ad or cost per attempt refer to different, less relevant concepts.

CPA measures the cost to achieve a conversion in paid search. It tells you how much you’re paying for each desired action, such as a sale or a lead.

The key idea is that CPA = total spend divided by the number of conversions (acquisitions). For example, if you spend $600 and get 12 conversions, your CPA is $50 per acquisition.

In many contexts you’ll see “cost per action” used synonymously because an action can be defined as the conversion event you care about. However, the standard label in paid search analytics is Cost per Acquisition, which emphasizes the goal of acquiring a customer or lead. Other options like cost per ad or cost per attempt refer to different, less relevant concepts.