CPA or Cost per Acquisition is usually used as a charging method in Affiliate marketing. With companies like Hertz Rental, RyanAir and others. Within the context of display advertising and the Google AdWord system CPA bidding is an advanced option that lets you bid directly for conversions.
Effectively our CPA calculator's will tell any marketer how much they have spent in order to achieve a goal. That goal can be defined by many metrics such as: a sale, a lead, an obtained email address, social media sharing, comments, competition entries, and so on. The question is how much did it actually cost the company for each acquisition and what can be learned from the marketing campaign?
CPA Calculator Instructions:
We have predefined the CPM, CTR and Conversion Rate field as an example, if you click the Calculate button you will find the CPA using the predefined example as 30 euro. These predefined fields can be manually changed.
You must enter your CPM rate, your CTR and the Conversion Rate (Percentage of people who visited an ad that took a desired action (sale, comment, share, newsletter subscription, etc.); if unknown, substitute with the conversion rate of your site).
By using both CPA Calculators you can analyse the difference and performance between a search campaign (CPC) and a display campaign (CPM) in terms of acquisition.