Cost Per Action
What is Cost Per Action or CPA?
Cost Per Action or CPA is a pricing model in the advertising industry used in performance campaigns. It indicates the cost advertisers pay for every action users complete on a digital advert. An action could be installing, registering, clicking on a link, etc.
What is CPA marketing?
The CPA marketing model involves:
- A publisher (seller of ad inventory).
- Advertiser (who wants to promote something on a publisher’s inventory)
- A CPA network (earns a commission by connecting publishers to advertisers).
Publishers and advertisers sign up with a CPA network. Every time an action occurs on the ad, the publisher gets paid by the advertiser. The CPA network earns its share in the form of a commission fee from both publishers and advertisers.
How is CPA calculated?
Advertisers can calculate CPA as follows:
Total advertising cost / Total number of actions