Cost per action

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Cost per acquisition (CPA), also known as cost per action, pay per acquisition (PPA) and cost per conversion (CPC), is an online advertising pricing model where the advertiser pays for a specified acquisition – for example a sale, click, or form submit (e.g., contact request, newsletter sign up, registration etc.)[1]



CPA as "cost per acquisition"[edit]

CPA is sometimes referred to as "cost per acquisition" or "cost per action", which has to do with the fact that many CPA offers by advertisers are about acquiring something (typically new customers by making sales).[4]

Formula to calculate cost per acquisition[edit]

Cost per acquisition (CPA) is calculated as: cost divided by the number of acquisitions. So for example, if one spends £150 on a campaign and gets 10 "acquisitions" this would give a cost per acquisition of £15.

Pay per lead[edit]

Pay per lead (PPL) is a form of cost per acquisition, with the "acquisition" in this case being the delivery of a lead. Online and Offline advertising payment model in which fees are charged based solely on the delivery of leads.



There are numerous risks associated with any Pay Per Lead campaign, including the potential for fraudulent activity by incentive marketing partners. Some fraudulent leads are easy to spot. Nonetheless, it is advisable to make a regular audit of the results.

Differences between CPA and CPL advertising[edit]



There are other important differentiators:

  • CPL campaigns are usually high volume and light-weight. In CPL campaigns, consumers submit only basic contact information. The transaction can be as simple as an email address. On the other hand, CPA campaigns are usually low volume and complex. Typically, a consumer has to submit a credit card and other detailed information.

PPC or CPC campaigns[edit]

Pay per click (PPC) and cost per click (CPC) are both forms of CPA (cost per action) with the action being a click.[5][6] PPC is generally used to refer to paid search marketing such as Google's AdSense or Google Ads. The advertiser pays each time someone clicks on their text or display ad.


Also, pay per download (PPD) is another form of CPA where the user completes an action to download a digital content such as apps, digital media, and other files.[10] The actions can include completing surveys or answering quiz in order to generate revenue from a third-party advertiser.[11]

Tracking CPA campaigns[edit]

With payment of CPA campaigns being on an "action" being delivered, accurate tracking is of prime importance to media owners.



Effective cost per action[edit]





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  7. ^ "Cost-per-click (CPC): Definition - Google Ads Help". Retrieved 2018-09-05.
  8. ^ "Help Center". Retrieved 2018-09-05.
  9. ^ "Amazon vs. Google: Paid Search CPC | content26". Retrieved 2018-09-05.
  10. ^ "What is Pay-Per-Download?". CodeFuel. 2014-11-23. Retrieved 2018-09-05.