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GlossaryJune 12, 20262 min read

Cost Per Acquisition (CPA)

Learn what CPA means. See average cost per acquisition by industry ($28-$131) and how to calculate if campaigns are profitable.

By The Ad Spend
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The total cost to acquire one customer or conversion. Includes all ad spend divided by the number of completed actions like purchases or sign-ups.

Formula

Total Ad Spend ÷ Conversions

Benchmark range

Google Ads average: $70.11. Legal: $131.63. Auto Repair: $28.50. Restaurants: $30.27. E-commerce: $47.94.

Why it matters

The primary profitability metric. Compare CPA to customer lifetime value—if CPA exceeds LTV, the campaign loses money regardless of volume. Platform-reported CPA often looks better than reality; validate against backend data.

Where it applies

  • Google Ads
  • Meta Ads
  • Microsoft Ads
  • LinkedIn Ads
  • TikTok Ads
  • Amazon Ads

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