Measuring Your Cost-Per-Action
The success and cost-effectiveness of your lead-generation campaigns are based on another form of measurement. The cost-per-action (CPA) is the average cost of each customer action, based on the number of people who actually respond to an ad or marketing technique.
With CPA, it’s not enough for potential customers to see an online ad, such as a search engine ad or display ad, from your company. They also have to take some sort of specific action, such as (1) clicking on the ad, (2) visiting the landing page on your website, and (3) purchasing the product, or filling out the online form to take advantage of the special offer in the ad.
In the example of the 5,000-name e-mail list, purchased for $500, your CPM—the ...
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