CPA (cost per action)

Cost Per Action (CPA) is a marketing metric that measures the amount an advertiser pays only when a specific action occurs, such as a purchase, sign-up, or download. Instead of paying for views or clicks, advertisers invest directly in results that matter to their business. This model ensures advertising budgets are spent efficiently, maximizing return on investment. For example, if a company pays $10 for every customer who completes a purchase after clicking on an ad, their CPA is $10. CPA is a performance-based approach, aligning ad costs with actual outcomes.