Cost Per Action (CPA)

What is Cost per Action (CPA)?

Cost Per Action(CPA) is a metric for tracking conversions while engaging in online advertising. It measures how much businesses have to pay to achieve their goal/action. CPA is mainly used in affiliate marketing, which is simply used to boost user actions like product purchases, form completion, newsletter signing up, etc. 

This metric is significant because it allows you to understand whether a particular spending on conversions can work as a marketing strategy and generate leads. They can be estimated by dividing the total cost of campaigning by the number of actions taken. To improve CPAs, we have to refine the target audience, marketing messages, landing pages, and retargeting.