Tailspin Toys wants to use a CPA metric to measure the effectiveness of its display advertising campaigns. What does “CPA” stand for?
Select one option.
- Cost per audience
- Cost per ad
- Cost per analysis
- Cost per action
Explanation: Cost per action (CPA) is the correct term representing Tailspin Toys’ desire to measure the effectiveness of its display advertising campaigns using a specific metric. CPA refers to the cost incurred by an advertiser for each desired action completed by a user as a result of clicking on an ad. This action could vary depending on the advertiser’s objectives, such as making a purchase, filling out a form, or signing up for a newsletter. By measuring CPA, Tailspin Toys can assess the efficiency of its display advertising efforts in generating meaningful interactions or conversions with its target audience. Unlike the other options listed—cost per audience, cost per ad, and cost per analysis—which do not accurately reflect the intended metric for evaluating campaign performance, CPA aligns directly with the goal of measuring the cost-effectiveness of driving specific user actions through display advertising initiatives. Therefore, the correct answer is “Cost per action.”