The CPA calculator is an essential marketing tool. thanks to this online calculator you will have an idea of how many customers you attract.
When running a company’s marketing you will want to know what constitutes a successful marketing strategy. The Cost Per Acquisition metric is an excellent indicator of investment and marketing results, and a starting block for more analysis in to how to improve your advertisement strategy. With our Online Calculator you can now quickly calculate your CPA.
What does CPA stand for?
CPA stands for Cost Per Acquisition. An Acquisition in this context refers to a new customer that was reached thanks to your marketing campaign. This is different from an individual who has merely seen and clicked your advertisement (for this use the Cost Per Click Calculator). Thus, you are not only seeing if they saw your advertisement. You are also seeing whether the target audience was converted into a customer by it.
How to calculate Cost Per Acquisition?
The Cost Per Acquisition is a ratio of the Acquisitions your campaign has attracted and to the amount of money spent on a marketing act or advertisement campaign.
CPA = Total Amount Spent / Total Attributed Conversions
You can either calculate your marketing spend as an overall spend or single out a specific marketing channel. Singling out the specific marketing channels allows you to have an idea how they are performing up against each other.
Your Total Attributed Conversations are the amount of acquisitions attributed to the specific marketing channel or your overall marketing campaign that you want to study.
What can I use the CPA for?
The measure of Cost Per Acquisition helps you determine the effectiveness of your ad campaign. It mostly concerns the use of media and paid marketing tools such as social media ads. However, you can also include more indirect campaigns such as a team of SEO article writers.
Marketeers regard the CPA as a much more accurate tool in determining whether the actual content of your advertising campaign is engaging enough to attract customers.
How can I get a good CPA score?
This will largely depend on the effectiveness of your advertisement’s content and brand. Using simple psychological techniques, and adapting them according to your target audience, are essential for getting a good CPA score.
Your CPA will also depend on the landing page that your ad redirects too, and the quality of your product. Thus, it is not just your marketing and sales team that needs to adjust in case of a low CPA. It can also be a case of the product not being up to standard or the website not being up to scratch.