Cost Per Aquisition (CPA)
Updated: Jan 26
What is Cost Per Acquisition (CPA)? Understanding this metric and it's variables is extremely important for the lifetime of a Gaming company. If a company does not have an understanding of it's CPA, it won't be able to accurately calculate budgets and profits.
Cost Per Acquisition (CPA)
This metric calculates the cost of a user action, such as a game download, app download, acquisition etc....CPA is calculated by the total cost is divided by the amount of user actions.
Modern day Gaming companies are going to put a significant amount of marketing efforts and dollars into launching campaign. In the large, competitive and constantly evolving Gaming Industry these efforts are necessary in order to acquire new players, increase user engagement, in game purchases, subscription purchases and improve retention of current players.
If a Gaming company charges $1.99 for a new game app download but the company cost of the download is $2.00. The result will be a profit loss of -1 cent per user app download.
Understanding what Gaming Analytics are and how they can be used to develop effective business strategies is essential in todays Gaming Industry. Understanding how to use gaming analytics to calculate CPA accurately is neccessary to measure profits and develop effective business strategies. Having an effective data analytics program in place is an essential step in making informed business intelligence decisions.