What is CPA?
CPA(cost-per-acquisition) is the average cost to achieve one conversion through paid advertising.CPA = total advertising costs / number of conversions.It is one of the most important KPIs within SEA becauseSEAimmediately shows what a customer or lead costs you on average.How do you calculate the CPA?The CPA
is automatically calculated via conversion tracking in Google
Ads.You can also aim for a target CPA via Smart Bidding as a bidding strategy:Conversion TrackingautomaticallyGoogle Adsas a bidding strategyWith the Target CPA bidding strategy, Google instructs the algorithmBidding Strategybids per auction.This requires sufficient conversion data, at least 30 conversions per month.The Quality Score and relevant keyword types influence how much work Smart
Bidding has to do to reach the target.CPA vs.
ROASCPA focuses on costs per conversion without taking into account the value of that conversion.ROAS is based on the ratio between turnover and costs.For lead generation, CPA is more practical;for e-commerce, ROASQuality Scorebetter.WhatKeyword Typesis lower than the gross profit per conversion.How do I lower my CPA?By increasing
the conversion
rate of your landing page and filtering irrelevant clicks through negative keywords.Is CPA different from CPL?CPL (cost-per-lead) is a sub-type of CPAROASa lead is the conversion.More at developers.google.com/search.