What is eCPA (Effective Cost Per Action)?
eCPA, short for Effective Cost Per Action, is a metric used in the digital marketing industry to measure the cost of a specific action taken by a consumer after interacting with an advertisement. This action could be anything from making a purchase to filling out a form or signing up for a newsletter.
Unlike other metrics such as Cost Per Click (CPC) or Cost Per Impression (CPM), eCPA takes into account the actual return on investment (ROI) for each action taken. This allows advertisers to better understand the effectiveness of their campaigns and make necessary adjustments to improve performance.
Calculating eCPA involves dividing the total cost of an advertising campaign by the number of actions taken by consumers. For example, if a company spends $1000 on an ad campaign that generates 100 conversions, then the eCPA would be $10 per conversion.