Cost Per Acquisition is an effective Marketing tool where it gives more importance to conversions (leads, customers) rather than clicks. In this CPA Model, the web marketing advertisers pay only every time a site visitor is converted into customers. The internet marketing advertiser is not charged per click but per conversion. It  is calculated by dividing the cost of advertising by the number of leads or customers for a given period of time. The main difference between PPC and CPA is that, the web marketing advertiser pays first and then measures the conversion and traffic afterwards in PPC, while in Cost Per Acquisition advertising, the advertiser receives the traffic first and pays only after having converted visitors to customers.

CPA is a vital tool in accessing the actual value of a marketing campaign. One cannot spend thousand of thousand dollars for a low yield, so  cost per acquisition can inform us how much we are spending to actual profit. . In general, cost per acquisition is performance based, and commonly pays a commission on products and/or services that are actually sold .The CPA can provide advertisers with an effective marketing model that can assist them further by lending valuable data on how leads convert to actual sales and length of time involved in the closing of the sale. As an assessment tool, the CPA can be extremely effective in providing necessary data for future marketing campaigns