Terminology Definition: Cost Per Acquisition (CPA)

What does Cost Per Acquisition (CPA) mean?

Cost Per Acquisition, also known as Cost Per Action, is a digital advertising pricing model where the advertiser pays for a specified action - for example, a sale, click, or form submit (lead generation). CPA is considered the optimal form of buying online advertising from a direct response perspective as it minimizes the risk for the advertiser because they only pay for a specific action.