What does CPA mean in marketing?
CPA in marketing stands for Cost Per Action or Cost Per Acquisition. It refers to the cost incurred by an advertiser for a specific action taken by a user or for acquiring a new customer134.Key points about CPA in marketing:
- It’s a pricing model where advertisers pay when a user takes a desired action, such as:
- CPA is calculated by dividing the total advertising spend by the number of acquisitions or actions4.
- It’s used to measure the efficiency of advertising campaigns and determine the cost of converting a lead6.
- CPA marketing often involves three parties:
- Affiliate or Publisher: Promotes the product or service
- Business or Advertiser: Pays for the promotion
- CPA Network: Connects affiliates and advertisers5
- It’s particularly popular in affiliate marketing, where affiliates earn commissions for driving specific actions35.
- CPA differs from Customer Acquisition Cost (CAC) as it focuses on specific channels or campaigns rather than the average cost across all channels4.
By 2025, understanding CPA has become essential for marketers, especially with global digital advertising expected to exceed $645 billion9