What is CPA (Cost Per Action)? – Definition
CPA (cost per action) is one of the online advertising measurements. It shows you how much money you have to pay for a specific action (e.g. a sale, filling in a form, downloading an ebook). Determining the cost of this measurement will allow you to estimate the number of conversions within the budget.
CPA indicates the cost of one particular action, which is generated by the advertisement. We can say that this is the average cost of one lead, conversion, or sale.
How to Calculate CPA?
Let’s assume that your budget for the campaign is $1000 and it generated 200 actions. Then the ratio is $5.