Glossary

CPA (cost per action)

CPA (cost per action, or cost per acquisition) is a pricing model where the advertiser pays only when a defined action is completed — a purchase, lead, install, or deposit — rather than for impressions or clicks. The entire affiliate industry runs on it, which is why performance networks are called CPA networks.

How it compares

CPA shifts the risk down the chain: with CPM the publisher is paid regardless of results, with CPC the advertiser pays for interest, with CPA the advertiser pays only for outcomes. In exchange, CPA rates are far higher per unit — an install can pay dollars, a deposit hundreds.

As a metric ("my CPA is $12"), the same abbreviation means the average cost you actually paid per acquired action — ad spend divided by conversions — which is the number you optimize against the offer's payout.

Related terms