In the world of digital marketing, cost per action refers to the cost of a single action performed by a user within an advertising campaign conducted by an advertiser.
When we talk about an action, it can refer to different types of interaction: clicking on a page, subscribing to a newsletter, or even purchasing a product.
This is a widely used tool in web marketing, with relatively simple management thanks to all the data traceability tools available on the web (Google Analytics to name just one).
It follows that its use is difficult and not very functional in all those contexts that are not compatible with this type of traceability. Indeed, it is very difficult to determine the CPA (Cost per Action) for certain media such as television or radio.
How to Calculate Cost per Action
Let's now look a little more concretely at what it involves and how this calculation is performed.
One must take into account the overall cost of the campaign carried out. This total cost should then be divided by the number of actions received in response to the campaign.
The result of this simple allocation will equal the CPA.
Let's make an example: the entire advertising campaign cost 1,600€ and generated 320 actions. Based on 1,600€/320, the cost per action amounts to 5€.
Why Cost per Action is Useful
The cost per action is therefore a rather useful metric for the advertiser who uses it.
It allows for better monitoring and control of incurred expenses, to identify which channels are most exploited, and generally to observe user behavior.
We can therefore ultimately conclude by asserting that it is an excellent tool for certain types of advertising campaigns rather than others.
You can do it too, you just need a lot of commitment and an excellent marketing and sales platform.
Free trial for 30 days. No credit card required.
