Sharing experiences in online advertising

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It is also important to consider the customer life cycle and their value to the company. If the customer becomes a regular, makes repeat purchases, or brings in referral traffic, the cost of acquiring them may be justified by the long-term benefits.

Ultimately, a good cost per action in advertising will be individual for each company and will depend on its specific goals, budget and business model.

An example of the impact of CPA on the efficiency of a digital funnel
Let's look at an example to understand what a good CPA is. Let's imagine that you spent 35,000 rubles on displaying an ad and received 35,000 impressions, received 315 applications from potential clients. CPA will be 111 rubles, and revenue will be 2,646,000 rubles.

Here's how the digital funnel will change if this figure is increased or decreased by 10%:


Unit Economics Calculator: Estimating the Impact of CPA on Revenue Changes
If CPA is increased to 122 rubles, sales revenue will decrease by 9% and amount to 2,410,000 rubles. If the indicator is reduced to 100 rubles, revenue will increase by 11% to 2,940,000 rubles.

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How to Reduce CPA
Reducing CPA is an important task for many advertisers, as it allows them to increase the effectiveness of their advertising campaign and get more conversions at the same cost. Here are some ways to reduce CPA:

Target Audience Optimization: A more accurate understanding of your target audience allows you to customize your advertising campaign so that it attracts higher-quality traffic with a high probability of converting into a lead.
Improved ad quality. Attractive and relevant ads will attract your target audience.
Testing and optimization. A/B testing various elements of an advertising campaign, such as headlines, images, calls to action, and colors, helps find optimal combinations and reduce CPA.