GlossaryCost Per Action

Cost Per Action

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:
  1. A publisher (seller of ad inventory).
  2. Advertiser (who wants to promote something on a publisher’s inventory)
  3. 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

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Related terms

Ad inventory

Cost Per Mille

Cost Per Click

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