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changelog

CPA (cost-per-action) Charge Type

December 30, 2024

Importance of CPA

CPA provides the critical link between ad spend and actual conversion, allowing for more granular optimization and better budget allocation. This directly addresses a key advertiser need: understanding the cost of acquiring a valuable customer through their campaigns.

Key Benefits

  • ROAS Optimization: CPA tracking allows advertisers to directly measure the return on their ad spend by understanding how much it costs to acquire a customer.
  • Performance Measurement & Comparison: CPA provides a clear and concise metric for evaluating campaign/product performance.
  • Improved Budget Allocation: By understanding the CPA for different products or campaigns, advertisers can allocate their budget more effectively, shifting spend towards the most profitable acquisition channels.

How It Works

This feature will require integration changes .

The charge is triggered whenever a reported purchase from a marketplace is attributed to a sponsored click.

CPA Calculation: The platform will automatically calculate CPA by dividing the total ad spend for a campaign by the number of conversions attributed to that campaign.

Considerations

  • Only for sponsored listings
  • Only last-click attribution is supported
  • Only for campaigns with “total budget” configuration
  • Ignore over spending. If a purchase happens after the total budget is consumed, the charge will not be reflexted.
  • Not compatible with halo attribution.