Cost Per Action [CPA]
Cost Per Action
It sounds official, has a professional looking abbreviation (CPA) but what is it saying? Cost per action, or sometimes called cost per acquisition is easiest to understand by breaking it down.
(1) this term is used in ADVERTISING,
most often online advertising. That means that it is also
(2) Secondly, CPA refers to getting someone to
DO SOMETHING. These ads are striving
for more than impressions alone.
(3) Lastly, we bring it all together by saying
It is the COST an advertiser pays for an online ad when
SOMEONE performs the desired ACTION.
So now the obvious question is “what’s the action?” Well, it depends on your goals and objectives. Let’s say your goal is to generate more leads via a form on your website. Your CPA would be the cost per form fill. Did your customer fill out an information sheet? Did she click the learn more button? Did she purchase a product? Did she schedule a consultation? Maybe she just spent enough time on the page you wanted her to look at. Action or acquisition is your predetermined “thing” that you want people who see your ad to do.« Navigate to Glossary Index