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Glossary Term
Analytics

Acquisition Cost (CPA)

Cost Per Acquisition - the average amount spent to generate one booking, enquiry or conversion.

Related Service: Strategy & Planning

Acquisition cost (CPA): what it means in practice

CPA (Cost Per Acquisition) is the average amount you spend to generate a single desired outcome - an enquiry, a purchase, a booking, or a qualified lead. It’s one of the most useful metrics for deciding whether a campaign is sustainable, but only if the “acquisition” is defined correctly.

How to calculate CPA

  • Simple: total spend ÷ number of conversions (e.g. £2,000 ÷ 40 leads = £50 CPA).
  • Better: include downstream quality (SQLs, revenue, bookings) and compare against margin.

Common pitfalls

  • Counting low-intent events as conversions (inflates performance and hides waste).
  • Ignoring lead quality (a low CPA can still be unprofitable).
  • Not accounting for repeat purchase or lifetime value where relevant.

The best way to use CPA is alongside value: pair it with conversion value, revenue per lead, or contribution margin so optimisation decisions improve profit, not just volume.

More Analytics terms

Browse related definitions in the same glossary category.

Previous Term

Acquisition Channel

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Anonymous Traffic

Acquisition Channel

The source through which users find your website - such as organic search, paid search, social media, or referrals.

Anonymous Traffic

Website visits where user data or referrer information is not available due to privacy settings or tracking restrictions.

Attribution Model

A rule that determines how credit for conversions is assigned to different marketing touchpoints (e.g., first click, last click, data-driven).

Average Position

A metric indicating where a page typically ranks in search results for a given query. Replaced by average ranking in GA4.

Behaviour Flow

A report in analytics tools showing how users navigate between pages and where they drop off.

Bounce

A single-page session with no interaction. High bounce rates can signal poor UX, irrelevant content, or slow loading times.

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