Cost Per Action or CPA (as it is often initialized to) is a phrase often used in online advertising and online marketing circles.
CPA is considered the optimal form of buying online advertising from the advertiser’s point of view. An advertiser only pays for the ad when an action has occurred. An action can be a product being purchased, a form being filled, etc. (The desired action to be preformed is determined by the advertiser.)
A related term, eCPA or effective Cost Per Action, is used to measure the effectiveness of advertising inventory purchased (by the advertiser) via a CPC, CPM, or CPT basis.
The CPA can be determined by different factors, depending where the online advertising inventory is being purchased.
Other common forms, of charging for advertising, include:
- CPC
- CPM
- CPT
This guide is licensed under the GNU Free Documentation License. It uses material from the Wikipedia.
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