CPA, or cost per action, is a digital marketing metric used to measure the cost of a specific action taken by a user on a website or advertisement, such as making a purchase, submitting a form, or subscribing to a service.
To calculate CPA, you divide the total cost of a campaign by the number of actions that were completed as a result of that campaign. For example, if a campaign cost $1,000 and resulted in 100 purchases, the CPA would be $10.
The average CPA for a business can vary widely depending on the industry, the type of action being measured, and the specific advertising channels being used. It’s important to set a target CPA that aligns with your business goals and to continually optimize your campaigns to improve their effectiveness and lower their cost per action.