CPA (Cost Per Action)
September 9, 2021
Cost Per Action advertising is based on a visitor taking some specifically defined action in response to an ad. “Actions” include such things as a sales transaction, a customer acquisition, or a click. Specific examples include:
The cost an advertiser pays to acquire a customer.
The cost of advertising based on the number of clicks received.
Cost of advertising based on the number of database files (leads) received.
Cost of advertising based on the number of orders received. Also called Cost-per Transaction.
Cost of advertising based on the number of completed views (see Viewability)
The advertiser’s cost to generate one sales transaction. If this is being used in conjunction with a media buy, a cookie can be offered on the content site and read on the advertiser’s site after the successful completion of an online sale.