Cost per acquisition (CPA) is a pricing model used in some forms of digital marketing, where the advertiser pays for each conversion, or completed sale, that results from their advertising campaign. This means that the advertiser only pays when a user takes a specific action, such as making a purchase or signing up for a service, as a result of the advertising campaign.
CPA differs from other pricing models, such as cost per click (CPC) or cost per impression (CPM), where the advertiser pays for each click on their ad or each time their ad is displayed, regardless of whether the user takes any further action. With CPA, the advertiser only pays when they get a desired result from their advertising campaign.
CPA can be a useful pricing model for advertisers who are focused on generating conversions and revenue from their advertising campaigns, rather than just increasing traffic or brand awareness. It can also be a good option for advertisers who have a clearly defined and measurable goal for their campaign, such as a certain number of sales or sign-ups.« Back to Glossary Index