What is CPA?
CPA is an acronym for Cost Per Acquisition and is an indicator of advertising effectiveness. Specifically, it shows how much it costs to obtain one
(e.g., requesting information about a service, registering for
an e-mail newsletter
, purchasing online, etc.).
Therefore, CPA can be said to be an extremely important indicator. On the other hand, in order to advertise on the web and make a profit, you must understand CPA.
The purpose of considering CPA is to check the cost effectiveness of advertising. A low CPA means that your company is getting more conversions with less advertising cost.
However, it is important to note that CPA numbers are not everything. Unless we find out what is behind the fluctuations in CPA, it will be difficult to develop planned advertising.
Promotion points with CPA in mind
By checking your CPA, you can determine whether you are making as much profit as you expected. The higher the CPA, the lower the profit, and the lower the CPA, the higher the profit.
By setting a target CPA and comparing it with the current situation, you can review advertising costs and advertising media, improve advertising content, etc.
On the other hand, it is also important to check the content of the conversion. For example, please note that the evaluation may differ depending on whether the CPA is for new product purchases or the CPA for all product purchases, including repeat customers.
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