CPA (Cost-Per-Acquisition)

The amount an advertiser pays when someone takes a specific action, like making a purchase or signing up for a newsletter. CPA stands for Cost Per Action

1. Performance Marketing: When the goal is to achieve measurable results like sales, leads, or conversions.
2. Affiliate Marketing: Paying partners only when they drive a desired action.
3. E-commerce Campaigns: To ensure spending is directly tied to sales or sign-ups.
4. Subscription Services: For businesses looking to acquire new subscribers or members.
5. App Install Campaigns: Paying only when a user installs and possibly uses an app.

CPA is effective when the primary goal is to achieve a specific action, ensuring that advertising spend directly correlates with desired outcomes. But platforms like Google also charge you with CPC (Cost Per Click) + CPA cost additionally.

Here is a example calculation for CPA :

For example, if you spend $200 on a Facebook Ads campaign and it results in 20 sign-ups, your CPA would be $10. This means that it cost you $10 to acquire each sign-up through that campaign.

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