Cost per acquisition
Cost per acquisition divides defined acquisition spend by the acquisitions obtained in a period
What it means, how it is used and where it comes up, with its related concepts.
What it is and how it works
It is necessary to clarify what counts as an acquisition and which costs are included. In advertising it can refer to a specific conversion, whereas CAC measures acquired customers with a defined scope of costs. The two metrics are only comparable if they share criteria.
Topics
Variants and linked concepts
- CPA. CPA stands for cost per acquisition or cost per action, depending on the context. The result being counted should always be stated.