CPA (stands for: Cost Per Action) – the cost of the action; a model for measuring and pricing online advertising. Payment is based on the recipient performing a specific action – such as clicking, submitting a form or making a purchase. To calculate the CPA, the total cost of the campaign should be divided by the number of measured actions. CPA will be higher than the cost billed in the CPC model – not everyone clicking on the ad will perform the desired action. In this model, the cost considers the number of clicks on your ad that are needed for someone to convert. Improving the conversion rate will lower the value of the CPA. This model involves less risk for advertisers than other campaign billing models.
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