Blended Cost per Acquisition (Blended CPA)

Overview

Blended Cost per Acquisition (Blended CPA) measures the aggregate marketing cost to acquire one paying customer.

πŸ“˜

Blended CPA = Blended Ad Spend / Non-Zero Orders

The calculation is based on data from the Blended Stats table.

Detailed breakdown

The formula above is derived from the following components:

Blended Ad Spend = spend + custom_ad_spend
Non-Zero Orders = SUM(if(order_revenue > 0, 1, 0)) --> Orders table

Where:

spend= SUM(spend) --> Ads table
custom_ad_spend = SUM(amount) --> Custom Spend table

Insights and Actions

Blended Cost per Acquisition (Blended CPA) is vital for assessing the cost effectiveness of converting marketing and advertising efforts into actual customers. Efficiently leveraging Blended CPA data can guide strategic business decisions:

  • Evaluate Advertising Channels: Identify which channels yield the lowest CPA and allocate more budget there to improve overall marketing ROI.
  • Optimize Ad Spend: Review and adjust spending on campaigns with high CPAs to reduce costs or improve conversion rates.
  • Refine Targeting Strategy: Use data insights to better target your ads, focusing on demographics or behaviors that convert at lower CPAs.
  • Improve Conversion Funnel: Analyze the customer journey for areas where improvements can reduce CPA, such as landing page optimization or checkout process simplification.

Example Use

Prompt

What's my Blended CPA for April 1, 2024?

Response

Query

select
  SAFE_DIVIDE(sum(spend), sum(orders_with_amount)) as blended_cpa,
from
  prepared_blended_stats_table
where
  event_date = '2024-04-01'