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OK, before I answer this question, let’s make sure that this term is understood.
Cost per Acquisition (CPA) is the average advertising cost for your ad to achieve the business objective you have specified as a conversion.
A conversion could be a phone call, a form submission, a transaction, an “add to cart”, an app download or any combination of these, depending on what you have specified is relevant.
Your CPA is calculated by dividing the total cost of your advertising spend by the total number of conversions. This is obviously more accurate the more conversions you have, so it is best to average it out over a period of time. That said, you can track separate CPAs for different ads, different keywords etc.
As a high level example, if your campaign receives 20 conversions, and you spent $60 in total, your average CPA for that campaign is $3.00.
OK, so that’s the definition of Cost Per Acquisition, but what should you expect? Well this is where you get an “it depends” answer. Depending on what you set as your conversions, your keywords, your targeting, your locations, your ad copy and a million other variables, your CPA will be different from someone else’s.
For the most part, every industry and location has an average CPA, and whether yours is higher or lower than the industry average when using Google Ads depends on how your ads and your website compare with your competitors’, and also how much marketing you do outside of Google to build awareness and trust.
This tip and many others are found at https://www.petramanos.com/category/tips/
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