What is the difference between CAC and CPA?
Posted: Mon Jan 27, 2025 9:55 am
CAC and CPA are often confused, although these two concepts are fundamentally different. Let's take contextual advertising as an example. Google Ads charges you every time someone clicks on an ad. How much you pay for 1 click is called CPA.
At first glance, it seems that CPA is the means by which the client was attracted. But the contextual ad did not appear out of thin air. Someone made it, most likely it was a PPC specialist who was paid. And he did the job according to all the rules (using the strategy of a marketer who receives a salary). And the marketer, in turn, used special services and kenya email list programs to analyze the target audience, competitors, and the market. All these expenses are taken into account in CAC - the cost of attracting one client.
There is one more nuance. CPA takes into account both old and new customers, because anyone can click on the ad. CAC determines the cost of attracting only new customers.
At first glance, it seems that CPA is the means by which the client was attracted. But the contextual ad did not appear out of thin air. Someone made it, most likely it was a PPC specialist who was paid. And he did the job according to all the rules (using the strategy of a marketer who receives a salary). And the marketer, in turn, used special services and kenya email list programs to analyze the target audience, competitors, and the market. All these expenses are taken into account in CAC - the cost of attracting one client.
There is one more nuance. CPA takes into account both old and new customers, because anyone can click on the ad. CAC determines the cost of attracting only new customers.