Cost Per Action (CPA)

Definition

The cost of acquiring a specific user action—whether purchase, signup, or download—paying only when people actually do something.

Example Usage

We're paying $25 CPA for app installs, which is above our target of $15.

Origin

Performance marketing and affiliate marketing model

Fun Fact

CPA model is riskier for advertisers but safer for publishers, which is why you see it in affiliate networks

Source: Digital advertising and performance marketing

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