The definition of CPA
CPA stands for Cost Per Action. It is the average amount of advertising expenditure that is needed to generate an action. An action can be a sale, but can also refer to soft conversions such as a:
- New lead
- Sent contact form
- Software download
- Click on an advertisement
- Visit with a minimum amount of visited pages
- Visit to the Contact-page
- Download of a white paper
- Visit to any key webpage
- Start of the sales funnel
- Referral to a 3rd party (send-a-friend)
- Printed page
- Return visit
- Non-bounce visitor
This KPI (Key Performance Indicator) allows advertising professionals to determine the effectiveness and ROI of a campaign, in order to scale the campaign up or down.
NOTE: CPA is sometimes defined as “Cost Per Acquisition”. This is a more narrow concept than CPA, as it only refers to actual sales.
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