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Cost Per Action, a metric used to measure the cost of a desired action, such as a purchase or form submission
Eric Gilmore
Feb 10, 2024
Cost Per Action (CPA) is a metric used in digital marketing to measure the cost of a desired action, such as a purchase or form submission. It is a crucial metric for businesses to track as it helps them understand the effectiveness of their marketing campaigns and the return on investment (ROI) they are getting.\r\rCPA is calculated by dividing the total cost of a campaign by the number of desired actions taken by users. For example, if a business spends $100 on a campaign and receives 10 form submissions, the CPA would be $10.\r\rThe benefit of using CPA as a metric is that it allows businesses to focus on the actions that are most important to them. For example, if a business's main goal is to increase sales, they can track the CPA for each sale made through their marketing efforts. This helps them optimize their campaigns to drive more sales at a lower cost.\r\rCPA is also useful for comparing the effectiveness of different marketing channels. For example, a business can compare the CPA for their Facebook ads versus their Google ads to see which channel is providing a better ROI.\r\rIn conclusion, CPA is a valuable metric for businesses to track as it helps them understand the effectiveness of their marketing campaigns and optimize their efforts to drive more desired actions at a lower cost.
Eric Gilmore
Eric Gilmore is the Founder of Creative Automatic. He started the company after spending a decade in ad tech, where he saw firsthand the performance benefits of building and testing a wide range of creative variations and how time-consuming it was to make them. Prior to starting Creative Automatic, Eric was the Lead Creative Engineer at Rocket Fuel, where he specialized in building dynamic creative optimization systems that adjusted visual compositions of ad units on the fly depending on a wide range of inputs aimed to improve campaign performance. Eric graduated from the Savannah College of Art and Design with a Master of Fine Arts in Interactive Design and Game Development.
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