Together with CPI, CPA is one of the most widespread payout models in mobile app marketing. In an app install campaign, payout models are the different ways in which advertisers pay DSPs (Demand Side Platforms) or other media sources for their advertising activity.
What Is eCPA?
CPA stands for Cost per Action, and it is a kind of payout model in which advertisers pay marketers, DSPs (Demand Side Platforms) or other media sources, for specific post-install actions, that were driven by the marketers’ activity (ads or other marketing efforts).
The post-install, or in-app events can vary depending on the different types of app install campaign, but they generally include subscription, registration, item purchase, and so on.
To have a more detailed overview of the app install campaign performances and revenues, it is possible to estimate a key metric, eCPA – effective cost per action. eCPA is the effective price paid for a pre-selected action driven by a media source: it can be obtained by dividing the total spending for the app install campaign by the number of selected actions in a given period of time.
Why Is eCPA Important?
For this reason, calculating the eCPA is a key part when working for the app install campaign optimization, as it gives you a precise picture of the available budget and advertising costs in time.
Moreover, eCPA is a fundamental metric for marketers and advertisers to understand the quality of their app users – high-quality users are those users performing the selected in-app event as many times as possible.
Talking about app install campaign optimization, the two main payout models and the two metrics, eCPI and eCPA, can be integrated. In fact, even when running CPI campaigns, you can estimate the eCPA to find the actual price paid for each post-install action, and optimize CPI campaigns towards the target eCPA set as a goal for the app install campaign.
To conclude, keeping track of these measurements will help you with the app campaign optimization and the increase of the app install campaign ROAS.
What You Need To Know About eCPA?
- eCPA stands for effective cost per action;
- eCPA is a metric expressing the actual price paid by advertisers to the publisher (DSPs or other media sources) for each pre-selected post-install event driven by their marketing activity;
- eCPA can be calculated by dividing the costs related to marketing activities by the number of pre-selected post-install actions in a given timeframe;
- eCPA is a significant metric as it provides an insight into the app install campaign performances and the quality of users.