Cost per action (CPA) marketing, also known as cost per acquisition, is a pricing model in digital advertising where advertisers pay for a specific action taken by a user, such as completing a form, making a purchase, or signing up for a newsletter. CPA is considered a performance-based pricing model because advertisers only pay when a desired action is completed, rather than simply for ad impressions or clicks.

CPA marketing can be a highly effective way for advertisers to reach their target audience and achieve their business goals. Instead of paying for clicks or impressions that may not result in a desired action, advertisers only pay for actual conversions. This helps to ensure that advertising budgets are being used effectively and efficiently.

Calculating the CPA involves dividing the total cost of a campaign by the number of desired actions, such as leads or purchases, generated by the campaign. For example, if an advertiser spends $1,000 on a campaign and generates 100 leads, the CPA would be $10.

CPA can be an important metric for advertisers and chief marketing officers as it allows them to measure the effectiveness of their campaigns in driving desired actions. By analyzing the CPA, advertisers can identify which campaigns and channels are most effective at generating conversions, and optimize their strategies accordingly.

In addition, CPA marketing can offer several advantages over traditional advertising models. For example, CPA allows advertisers to more accurately predict and control their advertising costs, as they only pay for actual conversions. This can be particularly beneficial for small businesses with limited advertising budgets.

CPA Marketing: Case Studies + Best Practices

Overall, CPA marketing can be a highly effective way for advertisers to achieve their business goals and measure the success of their campaigns. By focusing on generating conversions rather than just impressions or clicks, advertisers can ensure that their advertising budgets are being used effectively and efficiently.

For cast studies and best practices, check out the following resources:

• Pay for Performance Marketing: [CASE STUDY] How Pay For Performance Marketing Helped ZEISS launch a new product in the US, giving a new brand launch effort a bit of certainty in an uncertain scenario.
• Performance Marketing Experts: [BEST PRACTICES] A CMO’s guide to the Performance Marketing Agency (incl. Red Flags and Top Fails). Why, When and How To Evaluate Performance Marketing Agencies + Free Matrix