Alex Lukyanchuk

Cost-Per-Action (CPA)

Application price, or CPA (Cost-Per-Action — payment for action) – sometimes called the purchase price – an indicator showing how much your business pays for the target action (application, call, completed form). As a rule, the application will cost more than the cost of a click, because not all users who click on your ad will continue to perform the desired action, and it is logical.

The price of the application is made up of the number of clicks on the advertisement required for registration of the application, thus, an increase in the percentage of site visitors who have completed the target actions will reduce your price of the application. In addition to the cost per click, the bid price also affects Google’s advertising costs.Ads and Yandex.Direct.

Let’s see, what does it depend on?

Like other indicators in contextual advertising, the cost of the application directly affects the quality indicator. The most important metrics in Google and Yandex.Direct based on the quality of your keywords, ads and Promotrans. The higher your quality score, the less you spend – in fact, for every position above the average quality score of 5, the cost of action is reduced in 16% increments.

Keeping the quality score high and the bid price low can be a huge advantage for your advertising budget in the long run. This will give you the opportunity to buy more impressions in the issuance and increase the number of targeted actions with advertising.

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