CPA

CPA (Cost Per Action) is a method of paying for advertising, in which the advertiser pays only for the actions taken by users on their site, and not just for impressions or clicks. In other words, fees are charged, for example, for registering on the site, placing an order, downloading a file or subscribing to a newsletter.

From an economic point of view, CPA is considered to be the most effective of all options. Indeed, after all, the advertiser pays for the actions already taken by interested users and, moreover, gets the opportunity to more deeply evaluate the ongoing advertising campaign.

At the same time, the advertiser does not need to engage in attracting consumers or finding places to advertise. Intermediary partners from CPA networks that work with site owners are responsible for these actions. The cost of such advertising depends on the situation and on a number of factors.

The indicator is calculated by the formula:

Naturally, the higher the result, the more expensive the target action.

It is believed that CPA marketing is most suitable for companies that specialize in selling goods or offering services, and use the Internet to attract customers. It can be online stores, financial companies or all kinds of agencies. But here it should be noted the nuance that it can be difficult for start-up companies to find partners.

A special case of CPA is CPL (Cost per Lead) or an estimate of the cost of each attracted lead.

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