Average cost per action (CPA) is calculated by dividing the total cost of conversions by the total number of conversions. For example, if your ad receives 2 conversions, one costing $2.00 and one costing $4.00, your average CPA for those conversions is $3.00.

How is CPA percentage calculated?

Calculating MCPA% Using CPA Once youve collected the numbers, add up all of your marketing costs. Divide that total by the combined total of both your sales and marketing costs. This will give you a decimal number, which you can multiply by 100 to come up with your percentage.

How do you calculate cost per action?

Cost per action (CPA) is calculated as the cost divided by the number of actions being measured. So for example, if the spend is $150 on a campaign and the actions attributed to this campaign is 10, this would give the campaign a cost per action of $15.

What is Target CPA?

Target CPA is a Google Ads Smart Bidding strategy that sets bids to help get as many conversions as possible at or below the target cost-per-action (CPA) you set. It uses advanced machine learning to automatically optimize bids and offers auction-time bidding capabilities that tailor bids for each and every auction.

How can I reduce my CPA?

Effective Strategies to Reduce CPAUse Retargeting Techniques. Run Retargeting Campaigns for Visitors Who Abandoned Your Shopping Cart. Regularly Check Negative Keywords in Your Search Terms Report. Update Your Ad Copy. Lower Your Bids for Keywords. Put a Temporary Stop on Non-Converting Keywords.More items •Jul 27, 2016