Cost Per Acquisition (CPA)

What is cost per acquisition?

Cost per acquisition (CPA) is a key performance metric in digital marketing. It measures the total cost you incur to acquire a customer or trigger a specific action. In the iGaming industry, CPA typically shows how much a brand spends to gain a new player who completes a defined action — such as registering, making a deposit, or placing a bet.

Unlike cost per click (CPC) or cost per lead (CPL), CPA focuses on real outcomes. You only pay when a user takes the action you want. This makes CPA a favorite for brands that want results, not just traffic.

Why is CPA important?

CPA helps you understand the true cost of growing your customer base. It tells you if your marketing campaigns are profitable and where you might be overspending. When you know your CPA, you can:

Compare the efficiency of different marketing channels.
Set clear goals for acquisition costs.
Make data-driven decisions about where to invest your budget.

For iGaming brands, CPA is especially useful. It shows exactly how much it costs to get a new depositing player — one of the most valuable actions in the business. To see how CPA compares to other core metrics, check out our overview of key iGaming KPIs.

How does cost per acquisition work?

Calculating CPA is simple. Divide your total marketing spend by the number of acquisitions (new customers or completed actions).

Formula:
Cost per acquisition (CPA) = Total campaign cost / Number of acquisitions

Example:
If you spend $2,000 on ads and get 100 new depositing players, your CPA is $20.

CPA can be used for any action you define as valuable. This could be a registration, a first deposit, or even a bet placed. The flexibility makes CPA a universal metric for measuring marketing effectiveness.

Types of CPA campaigns

You can use CPA across many channels and campaign types:

Paid search: You pay when a user clicks your ad and completes a registration or deposit.
Affiliate marketing: You pay affiliates only when their referrals convert.
Social media ads: You track how many users sign up or deposit after clicking your ad.
Influencer campaigns: You measure the cost per new player who comes from an influencer’s link.

🔍 Learn more about affiliate program models.

Each channel may have a different CPA, so it’s important to track them separately. For a deeper dive into optimizing channel performance, see our article on audience segmentation.

Advantages of cost per acquisition

Budget efficiency: You only pay for real results, not just impressions or clicks.
Easy ROI calculation: You can quickly see if your campaigns are profitable.
Scalable: You can increase or decrease spend based on performance.
Channel comparison: CPA allows you to compare channels and double down on what works.

Best practices for CPA optimization

Target the right audience: Focus your campaigns on users most likely to convert. Use audience segmentation for precision.
Optimize landing pages: Make sure your landing pages are clear, fast, and persuasive.
A/B test creatives: Try different ads, messages, and offers to see what lowers your CPA.
Use retargeting: Bring back users who showed interest but didn’t convert the first time.
Monitor and adjust: Regularly review your CPA. Shift budget to the best-performing channels.

Common mistakes to avoid

Ignoring lead quality: A low CPA is useless if those users never deposit or play. Pair CPA analysis with lifetime value (LTV) and gross gaming revenue (GGR).
Setting and forgetting: Digital campaigns need regular optimization.
Overpaying for irrelevant actions: Make sure your “acquisition” is a valuable action, not just a sign-up.
Not tracking post-acquisition behavior: Monitor what new users do after they convert.

CPA and next-generation metrics

Today, leading brands go beyond CPA by integrating it with advanced market intelligence. For example, Blask’s Acquisition Power Score (APS) measures your brand’s ability to convert market presence into new customers. By comparing your CPA with your APS, you can see not just how much you’re paying, but how efficiently you’re capturing your market potential.

For financial benchmarking, compare your CPA-driven acquisition costs with your Competitive Earning Baseline (CEB). This shows if your acquisition investments are translating into expected revenue.

🚀 Explore how these metrics work together in Blask’s new era of brand performance.

Conclusion and next steps

Cost per acquisition is a must-track metric for any digital marketer. It gives you a clear view of your marketing efficiency and helps you make smarter decisions. By focusing on CPA — and validating it with next-generation metrics like APS, CEB, and GGR — you can optimize your budget, attract quality players, and grow your business profitably.