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Cost-Per-Acquisition

Cost-Per-Acquisition (CPA) is a metric, sometimes referred to as cost-per-action, used in Internet marketing that presents your spend rate per conversion. As an example, in a Google paid search campaign where the call-to-action on your site is to fill out and submit a contact form, the CPA would be defined as:

Total Google spend during n time period/total number of forms submitted during n time period

Some Internet marketing media outlets (e.g. banner advertising networks) allow advertisers to pay on a CPA basis. In this scenario, instead of the advertiser paying on a cost-per-click or cost-per-impression basis, they will only pay the media portal when a previously agreed upon action (e.g. form submitted or e-commerce sale) is committed by an Internet user.

 

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