Overview

Microsoft Cost per Acquisition (CPA) measures the total Microsoft advertising cost required to acquire one paying customer.

📘

Microsoft CPA = Microsoft Ad Spend / Microsoft-Reported Conversions

The calculation is based on data from the Ads table.

Detailed breakdown

The formula above is derived from the following components:

Ad Spend = SUM(spend) --> Ads table
Channel-Reported Conversions (Purchases) = SUM(conversions) --> Ads table
Microsoft Ads = where channel = 'bing'

Insights and Actions

Microsoft CPA helps you understand how cost-effective your Microsoft Ads campaigns are at driving customer acquisitions:

• Assess Campaign Efficiency: Track CPA to ensure you're acquiring customers at a sustainable cost.
• Optimize Budget Allocation: Shift budget to campaigns with lower CPA for better cost efficiency.
• Target High-Value Audiences: Use CPA data to refine audience targeting, focusing on segments that yield the most conversions at the lowest cost.
• Test Campaign Variations: Experiment with different ad formats or bidding strategies to lower CPA while maintaining conversion volume.

Example Use

Prompt

What's my Microsoft-reported CPA over the last 30 days?

Response

Query

SELECT
  a.channel AS channel,
  COALESCE(SUM(a.spend) / NULLIF(SUM(a.conversions), 0), 0) AS cpa
FROM
  ads_table AS a
WHERE
  a.channel = 'bing'
  AND a.event_date BETWEEN CURRENT_DATE() - 30 AND CURRENT_DATE()  - 1
GROUP BY
  a.channel
ORDER BY
  cpa DESC;