Cost Per Action (CPA)

Cost per action (CPA) is also known as pay per acquisition, which is a type of advertising campaign for mobile apps and Internet sites. CPA campaigns are usually contracted by advertisers, who will pay a publisher or a developer for a certain type of action or acquisition.

For example, an advertiser may choose to pay a publisher every time a consumer clicks on a part of the app or fills out a contact request form. This is one of the biggest methods of buying online advertising, as it gives advertisers free reign over the type of space they wish to acquire, and it also allows publishers and developers to profit from every action a consumer performs.

Calculations and Metrics for CPA Campaigns

The basic way to determine how a CPA is calculated can be achieved by dividing the total amount spent for the campaign by the number of specified actions that are performed. For example, if the advertiser spends $1000 on a campaign per 1000 clicks, the CPA is $1 per click.

CPA campaigns are one of the most effective types of advertising campaigns for publishers and front end developers, especially for those who are just starting out and looking to expand the app’s viewership and popularity on the app stores. They are a great way to measure the ROI of an advertising budget and act as free advertising from the publisher’s end.

Types of Actions

There are a variety of “actions” that can constitute a CPA campaign. In particular, some of the most popular CPA actions include:

• Clicks
• Views
• Installs
• Downloads
• In-App purchases
• Reviews and ratings
• Form submission
• Contact information submission

If a customer provides one of the following actions, it contributes to the campaign’s CPA rate. Typically, an advertiser will pay a publisher or developer for every 1000 or 5000 actions. It can vary from advertiser to advertiser, however.

Advantages of CPA Campaigns

CPA campaigns are some of the most popular types of campaigns that exist for mobile apps – and there are a few reasons why. For one, it offers an opportunity for integrated advertising, where advertisers work behind the scenes to gain revenue rather than frustrating the customer with popup ads or obvious banners.

Another reason why CPA campaigns are so successful is because they allow the publisher to put advertising efforts into their own hands. CPA networks prefer the developer to reach out to them, and not the other way around. A good CPA network relies on legitimate needs from a trustworthy business in order to guarantee increased revenue and profits. It is wise for a publisher or developer to reach out first for the following reasons:

• Honesty is key – by reaching out first, CPA networks will be more willing to engage in a contract with you.
• It is important to know your network – Not all CPA networks are right for your specific campaign. Understand which networks are reliable and trustworthy before making a choice.

All in all, CPA networks are some of the most popular and profitable campaigns available, both for advertisers and for mobile app developers.