Cost Per Acquisition (CPA)

Cost Per Acquisition (CPA) measures the total marketing and sales spend required to acquire a new customer, subscriber, or lead.

Formula:

CPA = Total Marketing Costs / Number of New Customers Acquired

Why It’s Important:

• Benchmarks campaign profitability.

• Guides marketing budget allocation.

• Optimizes customer acquisition strategies.

Example:

If a Dubai-based eCommerce store spends AED 50,000 in ad campaigns and acquires 200 new customers, CPA is AED 250.