Cost Per Action (CPA)

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Cost Per Action (CPA): A form of advertising where payment is dependent upon an action that a user performs as a result of the ad. The actions could be making a purchase, signing up for a newsletter, or asking for a follow-up call. An advertiser pays a set fee to the publisher based on the number of visitors who take action. Many affiliate programs use the CPA model. The image below shows the difference between Cost Per Action (CPA) and Pay Per Click (PPC) and Cost Per Impression (CPM).

Cost Per Action (CPA) vs Pay Per Click (PPC) vs Cost Per Impression