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.
| Metric | Value |
|---|---|
| Total Ad Spend | ₹5,000 |
| Total Actions (Purchases/Sign-ups/Leads) | 100 |
| CPA Formula | Total Ad Spend ÷ Total Actions |
| Calculation | ₹5,000 ÷ 100 |
| CPA (Cost Per Action) | ₹50 per action |