CPA Marketing – a marketing model that involves paying for a conversion action. CPA (Cost per Action) – an indicator by which the advertiser can calculate how much the targeted user action on the site has cost him. In other words, CPA is pay per action.
The pay-per-action model is economically considered more effective than pay-per-click/per-view. CPA is the basis of CPL and CPO.
CPL or cost per lead is the cost of receiving user data, i.e. the cost of a lead.
CPO is a performance indicator, which translates as “cost per order placed” and denotes how much it cost per unit sold to an advertiser.
The model is common in internet marketing because of its simplicity. Tracking online leads is usually easy, so there is no difficulty in calculating CPA in internet marketing.
The main advantage of measuring effectiveness with CPA is that the money is spent only when the user takes the action you want. In this way, you avoid unnecessary spending, such as with CPC.
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