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In the world of online advertising, CPA (Cost-Per-Action) advertising may seem confusing at first. Also known as “pay for performance,” CPA is an effective way for advertisers to select how they want to pay for their advertising by click, impression, sale, or other variable. CPA can also be termed as Cost per Acquisition or also known as Cost Per Sale. This is typically an average dollar amount to the total cost in clicks it takes to convert to a sale. Under a CPA agreement the advertiser agrees to pay the publisher a certain dollar amount per customer or conversion generated. Ex: Advertiser agrees to pay publisher $5 CPA on all new memberships generated by publisher ad-serving efforts.

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