What is Cost per Acquisition – CPA?

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Cost per Acquisition (CPA) or also called cost per sale is a payment model for online advertising, where the advertiser only pays when their online ad leads to a sale. The objective of this cost model is to achieve short-term sales, guaranteeing a profitable ROI for advertisers, since the media will only charge when the sale is formalized.

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The CPA payment model can have a fixed price, where the advertiser will pakistan phone number list the same amount of money for each sale made through the online ad regardless of the purchase amount. This model is very beneficial when the advertiser's e-commerce shopping carts have very similar or identical prices. On the other hand, CPA can also have a variable price, normally a percentage of the sale amount, where the advertiser will pay a commission to the publisher on the sale made through the online ad.

Uses of CPA in online advertising

Within online advertising, not all types of ads usually use CPA as a payment model, since, for example, text ads in search engines normally use CPM (Cost per thousand impressions) or CPC (Cost per click), although not always.

There are many options when it comes to promoting yourself on the Internet, but the most common uses of CPA are in affiliate marketing and display campaigns. For this purpose, dynamic banners and email marketing with specific offers are often used, trying to achieve a greater number of sales. CPA or cost per sale is especially used in retargeting or shopping cart recovery campaigns, which are actions focused on the final purchase of products.