What is PPA (Pay Per Action)
PPA stands for Pay Per Action or Pay Per Acquisition and is a term used to describe the price of acquiring a new customer or getting a user to perform a specific action.
In English, PPA can be translated as: Price per sale or per action.
PPA is often used in sales and marketing as an overarching KPI for measuring the profitability of your marketing and sales activities.
PPA and CPA
PPA is inextricably linked to CPA, which stands for Cost Per Action/Acquisition and describes the cost of a sale or action.
CPA is therefore partly a synonym for PPA. Read more about CPA here.
How is PPA calculated?
PPA is calculated as follows:
How to calculate PPA:
Price per conversion in currency = Costs / Number of conversions
Where costs are, for example, the sum of your marketing and/or sales costs, or for a specific campaign, ad, channel, or similar. The same applies to "Number of conversions".
An example of calculating PPA: if you spend 1,000 and have 10 conversions:
1,000 / 10 conversions = 100
PPA, the price for a new customer, is therefore 100 in this simple example.
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