Cost Per Acquisition

Search engine marketing uses cost per acquisition to determine the cost of acquiring new lead customers. The cost is found by dividing the number of leads or customers by the cost of the ad. The cost per acquisition has to be in line with the estimated costs or an imbalance will arise in terms of spending too much on advertising for gaining a user compared to the gain once the user buys a product. Usually cost per acquisition is low due to the multitudes of acquisitions that happen.