What is the formula to find CPA?

The formula to find Cost Per Action (CPA) is determined by calculating the total cost of a marketing campaign divided by the number of actions taken by users as a result of that campaign. In this context, "action" typically refers to a specific, valuable activity such as a purchase, signup, or download that contributes to the desired outcomes of the marketing efforts.

Choosing cost divided by action accurately reflects the way businesses evaluate the effectiveness and efficiency of their advertising spend in relation to the desired conversion behaviors. This measure is crucial for understanding how much it costs to generate a specific action, allowing marketers to optimize their strategies based on performance data.

Considering the other options, they all represent different metrics that are not aligned with the CPA concept. For instance, cost/view would refer to the cost associated with each view of an advertisement, cost/lead pertains to the expense incurred for acquiring a lead, and cost/interaction relates to the cost per engagement or interaction that doesn’t necessarily lead to a defined conversion action. These metrics serve different purposes and do not measure the effectiveness of actions in the same way CPA does.