Term

user-acquisition

CPA (Cost per action)

User acquisition

What is Cost per Action (CPA)?

Cost per action or CPA is a pricing model used for mobile user acquisition campaigns. In CPA campaigns, advertisers select a post-install action they want users to complete, and pay based on how many users take that action. 

Some commonly used post-install events for CPA campaigns include completing an in-app registration or making an in-app purchase. 

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Why is CPA important?

With the CPA model, advertisers don’t waste their ad budgets on more vanity metrics like views and clicks. By paying for a high-priority in-app action, they can ensure higher quality of the users they’re acquiring, resulting in better ROAS and campaign cost efficiency. 

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How to calculate CPA

CPA is calculated by dividing the advertising cost by the number of completed pre-defined in-app actions over the specified time period of the campaign. 

CPA formula

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