CPA is stand fro Cost Per Action. The advertiser will pay a specific amount by the action that a visitor take when they arrives through a publicity online. That action can be a purchase, a subscription, etc. The actions that will be pleased are decided by who announces, in as much the amount to pay can be decided by the advertiser, an adjustment between the parts, auction among others announcements, etc.

Each action has a price, that can be by example a percentage of the sale that the advertiser thanks to a published announcement obtained. The advertiser pays by each action that a visitor take indeed, achieving therefore a success ensured by the inverted money.

Sometimes term PPA (payment by action) is dealed with like synonymous CPA, although PPA makes more reference to the system of compensation and CPA to a specific cost after an action. For example, the CPA that must pay an advertiser to a publisher because referring subscribed is $4, therefore the CPA is $4. In as much the compensation system that is using in this example it is the PPA or payment by the actions that the referred one.

I believe that system CPA of by itself is not the best option, except for very specific cases where the conversions are very profitable and the commissions are very good, perhaps a mixed system CPA + CPC is interesting. To determine a profitable any CPA Advertising Campaign is to get highly targeted traffic that convert = money in the bank.

Labels: Cost Per Action, Advertising Campaign, CPA, PPA