Glossary
Cost Per Acquisition (CPA)
Cost Per Acquisition, also known as Cost Per Action, is a pricing model where the advertiser pays for a specified acquisition - for example, a sale, click, or form submit. It's a way to structure payment in performance marketing.
Formula: CPA = Total Cost of Campaign / Number of Acquisitions
Why it's important:
- Allows advertisers to pay only for specific results
- Helps in calculating ROI of marketing campaigns
- Useful for comparing the efficiency of different marketing channels