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Cost Per Action or CPA is online advertising payment method.In it

payment is based solely on performing actions like registering, making

sales,submitting forms which are linked to the advertisers site.This

method is also called as pay per actions.This does not pay for just

clicking on links which is referred pay per click or ppc programs.The

CPA can be determined by different factors, depending where the online

advertising inventory is being purchased.

This is the best form of advertising for the advertisers as it pays

only if the task or action is performed.The action to be performed is

desired by the advertisers and they have the exclusive right to decide

whether to pay or not as per the action is performed.
CPA is also

referred to as Cost per Acquisition as most of the CPA programs has for

the customers is to acquire something which are mainly in terms of say

new clients and products.

Many companies like Google,Ebay et cetra et cetra started their CPA

programs.Google opened it to the users of Adwords in 2006.Email

marketers of today do support CPA as they have to pay only for the

registered clients and sales.That is,they do not have to face the

umereous fake clients who only click on ads and never return back.This

is increasingly beneficial for the marketers.

For eg,Consider a sales

company like ebay.com is paying for CPA. Their marketing director sends

mails to 20000 email users out of them 10000 users click on the ad and

of that 5000 users register to be their client.So here ebay.com doesnt

need to pay all 10000 users who clicked but only those 5000 users who

became their client.

The problem with the cost per action model is that a publisher does not

get paid even though it is contributing value to a particular brand.

Although a person may not take action on a particular click, brand

awareness is being created. This in itself is value to a company.