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Cost per acquisition (CPA)

Cost divided by conversions: what one result costs. Google calls it cost per action, and its column is Cost / conv. Compare it with what a result is worth to you, not with an industry average.

By the Optizads team

On this page
  1. Why it matters
  2. Where to find it in Google Ads
  3. An example
  4. Common mistakes
  5. Checks that look at it
  6. Related terms

Why it matters

CPA is the price of a result. It is the number most lead and call businesses manage to, and the one Target CPA bidding aims at.

It is only as good as the conversion behind it: a CPA built on double-counted leads or on brand searches says less than it seems.

Where to find it in Google Ads

  1. Add the Cost / conv. column to Campaigns, Ad groups or Keywords.
  2. Compare it with the target CPA set on the campaign, if any.
  3. Split brand and non-brand before reading it.
  4. Check it by device, location and time where volume allows.

An example

CPA = cost ÷ conversions

A campaign that spent €2,400 for 60 leads has a CPA of €40.

If one lead in five becomes a €1,000 customer, a €40 lead costs €200 per customer, which the business can afford.

Common mistakes

  • Blending brand and generic into one CPA.
  • Setting a target CPA from a wish rather than from what a customer is worth.
  • Judging CPA on a few conversions.

Checks that look at it

Questions, answered.

Anything else? Ask Oppy in the product, or write to the team.

What is a good CPA?

One the business can afford: well below what a customer brings in profit. It depends on your margin and close rate, not on an industry average.

Is CPA the same as cost per lead?

When the conversion is a lead, yes. CPA is the general term for the cost of whatever conversion you count.

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