What is CPA — Cost Per Acquisition Basics and How to Set the Right Target
The article explains the concept of Cost Per Acquisition (CPA) in the context of ecommerce advertising. It emphasizes that CPA should not be evaluated in isolation but compared against breakeven CPA to determine campaign health. Additionally, it discusses the differences between CPA, CPC, and CAC, and provides insights on setting effective CPA targets.
- ▪CPA stands for Cost Per Acquisition, which measures the cost of acquiring one conversion through advertising.
- ▪Industry benchmarks for CPA typically range between 1,000 and 5,000 JPY per conversion, depending on the average order value (AOV).
- ▪Setting a target CPA requires understanding breakeven CPA, which is calculated using AOV and gross margin.
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