Plain-language questions
Ask for cost per acquisition (CPA) per month, customer or product in the SQL Explorer with AI. The AI writes the SQL, you see the query and run it yourself; the AI only receives metadata.
KPI · Marketing
Cost per acquisition (CPA): formula and example.
Cost per acquisition (CPA) is your ad spend divided by the number of conversions those ads deliver. A conversion is the action you have set as your goal, such as a purchase, a quote request or a sign-up. CPA shows what one desired result costs you through an advertising channel.
Cost per acquisition (CPA) formula
Ad spend ÷ number of conversions
Worked example
In September, Acme Groothandel spent €9,600 on Google Ads and recorded 160 conversions from it. Cost per acquisition is €9,600 ÷ 160 = €60.
Fictitious figures for Acme Groothandel, a sample wholesaler.
How to read this KPI
A lower CPA means you get conversions more cheaply. Whether a CPA is acceptable depends on what a conversion is worth to you: set it against the average margin per order or the value of a new customer. Compare CPA by campaign and platform, and bear in mind that each platform attributes conversions in its own way.
Pitfalls with cost per acquisition (CPA)
- Adding up conversions from several platforms when each one claims the same purchase.
- Combining different types of conversion, such as a newsletter sign-up and a purchase.
- Confusing CPA with the cost per new customer, while many conversions come from existing customers.
SQL & DAX
Calculating cost per acquisition (CPA) in SQL and DAX
Two examples on a fictitious data warehouse for Acme Groothandel: a PostgreSQL query and a measure for a Power BI model. Adjust table and column names to your own model.
SELECT date_trunc('month', spend_date) AS month,
platform,
SUM(cost) AS cost,
SUM(conversions) AS conversions,
ROUND(SUM(cost) / NULLIF(SUM(conversions), 0), 2) AS cpa
FROM ad_spend
GROUP BY 1, 2
ORDER BY 1, 2;CPA =
DIVIDE(
SUM(AdSpend[Cost]),
SUM(AdSpend[Conversions])
)In ENABLE
Tracking this KPI in ENABLE
In your Power BI dashboard
Define the KPI as a measure in your Power BI model and show it in the portal, with "Last refreshed" next to it. Access profiles and optional row-level security decide who sees which figures.
Custom dashboards (pilot)
Add the KPI as a tile to a custom dashboard, compared with last year. The Dashboard Builder is a pilot and can be switched on per client.
Monthly targets
With the built-in Targets app you set a target for the KPI per month, so you see actuals and target side by side.
FAQ
Frequently asked questions
How do you calculate CPA?
Divide ad spend by the number of conversions from those ads. With €9,600 in spend and 160 conversions, CPA is €60. Calculate CPA per conversion goal, as an enquiry and a purchase are not worth the same.
What is the difference between CPA and CAC?
CPA is ad spend per conversion within a channel, while CAC is all marketing and sales costs per new customer. A conversion need not be a new customer, and CAC also includes costs such as staff and tools. CAC is therefore usually higher than CPA.
What is a good CPA?
A good CPA is below the average margin a conversion brings in. If an average order delivers €150 in gross margin, a CPA of €60 still leaves a profit on the first order. There is no universally good figure, because it depends on your products and margins.
Further reading
- KPI libraryMarketing KPIs: formulas and examplesMarketing KPIs set reach, cost and conversion side by side. They become truly useful once you link ad and web data to leads and revenue from your CRM and accounting system.Read more
- ResourcesHow to build a KPI dashboard: steps and examplesA KPI dashboard is an overview of the key figures you use to steer towards your goals, such as revenue, margin, on-time delivery or absenteeism. A good KPI dashboard does not start with the software, but with the decisions it needs to support. You then choose a limited number of KPIs, define them, sketch the dashboard and only then build it.Read more
- SolutionPower BI dashboard portal: share dashboards securelyShare your Power BI dashboards securely in your own portal, with role-based access.Read more
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