CPA stands for Cost Per Acquisition. In this payment format, the advertiser only pays if the user performs any specific action or purchase through an advertisement.
This payment system is the most expensive since it requires having met a final goal such as a sale, downloading documents, etc… In this way, the advertising company will only earn money from the advertiser if users perform the actions mentioned above. It carries low risk for the advertising company because it will pay only for the objectives that you have set.
To calculate the CPA we will divide the total cost invested by the total number of conversions. This would be the formula to do the calculation; CPA = Total Invested / Number of Conversions.
The CPA system is highly valued because it allows to accompany the commercial progress of successful strategies. It is essential to ensure effective financial management.
The most common uses of CPA are those made for affiliate marketing and campaigns through banners or advertising emails. It is about getting as many sales as possible with specific offers.
CPA optimization
For the optimization of the CPA, exactly the same resources are used as in the CPC or CPM. We will create ads through attractive images or videos for users, thus making them more attractive and attractive. We will use keywords to capture the maximum number of potential customers. And finally, we will be selective when choosing the audience our campaign is aimed at. The greater the investment we make in our campaigns, the more options there will be to increase sales and conversions.