What does CPA stand for?

• A. Cost Per Click
• B. Cost Per Acquisition
• C. Cost Per Thousand Impressions
• D. Cost Per View

Answer: (B)

Cost Per Acquisition is a pricing model in digital advertising where you pay only when a user completes a defined action, such as making a purchase or signing up for a service. This makes CPA a performance-driven approach, tying spend directly to actual outcomes rather than just traffic. For example, if your campaign’s CPA target is $20, you aim to spend about $20 for each conversion. This differs from other common models: Cost Per Click charges for each click regardless of conversion; Cost Per Thousand Impressions charges for every 1,000 times the ad is shown; and Cost Per View charges for each view or video watch. The term acquisition encompasses the conversions that matter to the business, not just views or clicks.