CPA (Cost Per Acquisition)
The average amount you spend on ads to get one conversion, such as a purchase or sign-up.
Definition
Cost per acquisition (CPA), sometimes called cost per action, is total ad spend divided by the number of conversions it produced. If you spend $500 and get 25 purchases, your CPA is $20. The 'acquisition' can be any goal you define — a sale, a lead, an install.
Why it matters
CPA ties ad spend directly to outcomes, which makes it one of the clearest measures of whether a campaign is profitable. Compared to your average order value or customer lifetime value, CPA tells you whether the math works.
How it applies to UGC ads
Creative quality affects CPA at every stage — a better hook lifts watch-through, a clearer message lifts CTR, and both can lower the cost of each conversion. Testing more UGC-style variants is a common path to bringing CPA down.
Related terms
ROAS (Return On Ad Spend)
Revenue generated for every dollar spent on advertising — total ad-driven revenue divided by ad spend.
ReadCTR (Click-Through Rate)
The percentage of people who click an ad out of everyone who saw it — clicks divided by impressions.
ReadConversion Rate
The percentage of people who take a desired action — like buying or signing up — out of everyone who had the chance to.
ReadCPM (Cost Per Mille)
The cost an advertiser pays per one thousand impressions of an ad — 'mille' is Latin for thousand.
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