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What is CPA (Cost Per Action) in advertising and how to calculate it?
Analytics
Analytics
Marketing efficiency
Marketing efficiency
Evgeniy Letov
In this article, we will look at what CPA means for a digital funnel:

CPA - what is it in advertising?
How to calculate the value?
What is a good cost per action?
How to reduce the indicator?
What other indicators are used when building a digital funnel, read in the article “Digital Funnel: What It Is and How It Will Help a Business Earn More” .

Content
What is CPA
How to calculate CPA
What is a good cost per action?
An example of the impact of CPA on the efficiency of a digital funnel
How to Reduce CPA
Resume
What is CPA
CPA (Cost Per Action) is a metric for determining the cost of obtaining a specific action from a user, such as purchasing a product, filling out a form, registering on a website, etc. This is an important indicator of the effectiveness of an advertising campaign, since it allows you to estimate how much each conversion costs.

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How to calculate CPA
To answer the question of how to calculate CPA, you need to know the total cost of the advertising campaign and the number of conversions received. The formula for calculating CPA is as follows:

CPA = Total Costs / Number of Conversions

For example, if an advertising campaign cost 35,000 rubles, and the number of conversions received was 50, then the CPA will be 700 rubles.

What is a good cost per action?
A good or acceptable CPA level depends on many factors, such as the industry, business model, target audience, average check, and marginality. For example, for high-margin products or services, a higher CPA may be justified. In general, a good CPA value is one that ensures positive profitability and effectiveness of the advertising campaign.