Cost per action (CPA)
CPA, or cost per action, is a pure performance pricing model in which marketers pay media sources a fixed rate based on a pre-specified action.
Unlike cost per install (CPI), which relies on attributed user installs to achieve campaign conversion, CPA can be chosen from many different post install in-app events, such as registration, app launch, and item purchase, among others.
The value of CPA is simply the price an advertiser pays a media source for each pre-set action (i.e. purchase, registration, etc.) that is driven by that source.
For a broader look at how a given ad network may be performing, you can calculate the eCPA, or effective cost per action, by dividing the total cost incurred from that network, by the total number of specified actions based on a pre-selected time range.
CPA and the mobile ecosystem
Today, the reality is that CPA is not readily available as a pricing model for the reasons explained above.
Nonetheless, while the majority of marketers find themselves paying for CPC or CPI, they (or performance-driven media sources) will still optimize internally towards eCPA, to focus their campaigns and ad networks on the highest profitability potential.
While CPA still doesn’t have a strong presence as a frequently used pricing model, the metric undoubtedly guides both performance-driven marketers and media sources to focus on the quality of their users, and deliver more sustainable results in the long run.
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