CPA (Cost Per Acquisition)
The total cost of acquiring a new customer through a marketing channel - calculated by dividing total channel spend by the number of customers acquired.
CPA
What Is CPA (Cost Per Acquisition)?
Cost Per Acquisition (CPA) measures the total cost of converting a prospect into a customer through a specific marketing channel. In automotive, CPA includes not just the media spend but also the cost of tools, staff time, and agency fees. Typical dealership CPAs: paid search generates leads at $50-$200 per lead (with 10-20% closing rate, yielding $250-$2,000 CPA), while organic content marketing generates leads at $10-$50 per lead after the initial investment period. The key insight is that organic CPA decreases over time as content compounds, while paid CPA stays flat or increases as competition grows. This makes content the most cost-efficient long-term customer acquisition channel.
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