Cost Per Action (CPA)
Cost per action (CPA) is a pricing model in which marketers pay ad networks or media sources when a user takes a particular action (such as completing a purchase or registration) inside of an app, after engagement with an ad. It’s calculated by dividing the advertising cost by the number of actions taken.
That action can be any in-app event — a registration, tutorial completion, or purchase, for example — that is driven by a particular source. The price the advertiser pays for an action completion is fixed at the start.
Tracking your CPA is a good way to measure the effectiveness of a given campaign or media source.
Why is CPA important?
CPA has become an increasingly important part of the mobile marketer’s toolkit. Its main appeal is that it’s a pure performance model that lets marketers pay only for what they really want, rather than wasting budget on passive views that don’t convert.
It’s also great for attribution, as you can clearly see which sources lead directly to valuable actions — helping you make more informed campaign decisions down the line.