CPA stands for Cost Per Acquisition, an online advertising billing model in which the advertiser pays for each action taken by the user. This action can be a sale, a registration in a form, the download of an application, or any other activity that the advertiser considers valuable.
The purpose of CPA is to optimize the performance of advertising campaigns, since it allows the advertiser to pay only for the results obtained, instead of paying for impressions or clicks that do not necessarily translate into meaningful actions.
The operation of the CPA is simple. The advertiser defines the action he wants users to perform (for example, buying a product, signing up for a newsletter, downloading an application) and agrees with the publisher or advertising network a price for each action performed.
It is important to note that the CPA requires constant monitoring and analysis to ensure that the campaign is giving the expected results. If the cost per acquisition is too high, the advertiser could be paying more than they get in return.
The CPA model offers several advantages for both advertisers and publishers:
Despite its advantages, the CPA model also has some disadvantages that should be taken into account: