Glossary
CPA (cost per action) is a digital advertising pricing model wherein advertisers are charged based on the actions of prospective consumers, like clicking on a call-to-action (CTA), signing up for a newsletter, or making a purchase. It’s calculated by factoring in the total marketing spend in a time period divided by the total number of customers acquired. Here’s how it’s expressed in a formula:
Total marketing spend (month or year) / Total number of customers acquired = CPA
A CPA model lets advertisers track the top-performing web pages and marketing materials, optimizing future content according to consumers’ interests and preferences.
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