Cost Per Action (CPA) is a digital advertising pricing model that measures how much an advertiser pays when a specific action is completed by a user. Unlike metrics focused only on clicks or impressions, CPA tracks real outcomes such as purchases, sign-ups, downloads, or form submissions.
In simple terms:
👉 CPA = the cost of getting a desired result
CPA is widely used in performance marketing because it directly ties advertising spend to business goals.
With CPA-based campaigns, advertisers define a specific action they want users to complete. You only pay when that action happens — not just when someone sees or clicks the ad.
Common CPA actions include:
The CPA is calculated by dividing total ad spend by the number of completed actions.
Cost Per Action is one of the most valuable metrics for measuring true campaign effectiveness. It helps marketers:
Because CPA focuses on results, it’s often preferred by advertisers who care more about conversions than traffic volume.
A “good” CPA depends on several factors, including:
The key is ensuring your CPA is lower than the value the action generates. If acquiring a customer costs less than the revenue they bring in, the campaign is profitable.
