What does CPA stand for in online advertising?

What does CPA stand for in online advertising?

• A. Cost Per Acquisition
• B. Cost Per Action
• C. Clicks Per Ad
• D. Cost Per Attempt

Answer: (A)

CPA stands for Cost Per Acquisition. In online advertising, this is a pricing model where you pay for a completed conversion, such as a sale or a sign-up, rather than for clicks or impressions. It helps ensure your spend aligns with actual outcomes, and the CPA is calculated by dividing total spend by the number of conversions. Many platforms offer Target CPA bidding, letting you set a desired cost per conversion and allowing the algorithm to optimize bids to hit that target. While some people use the term “cost per action”, the established term in practice materials is Cost Per Acquisition, and options like Clicks Per Ad or Cost Per Attempt don’t describe a standard conversion-based pricing metric.

CPA stands for Cost Per Acquisition. In online advertising, this is a pricing model where you pay for a completed conversion, such as a sale or a sign-up, rather than for clicks or impressions. It helps ensure your spend aligns with actual outcomes, and the CPA is calculated by dividing total spend by the number of conversions. Many platforms offer Target CPA bidding, letting you set a desired cost per conversion and allowing the algorithm to optimize bids to hit that target. While some people use the term “cost per action”, the established term in practice materials is Cost Per Acquisition, and options like Clicks Per Ad or Cost Per Attempt don’t describe a standard conversion-based pricing metric.