CPA (Cost Per Action)

CPA refers to a pricing model where advertisers pay only when a specific action is completed. Actions may include purchases, sign-ups, downloads, or form submissions. It is considered a performance-based model because advertisers only pay for results, not impressions or clicks. CPA is widely used in affiliate marketing and conversion-focused campaigns.

It helps businesses optimize ROI by ensuring spending is tied to measurable outcomes. However, CPA rates are usually higher than CPC because of the guaranteed action requirement.

MetricValue
Total Ad Spend₹5,000
Total Actions (Purchases/Sign-ups/Leads)100
CPA FormulaTotal Ad Spend ÷ Total Actions
Calculation₹5,000 ÷ 100
CPA (Cost Per Action)₹50 per action