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Welcome to incognito money podcast CPA in Facebook Ads: How to Pay Only for Actions Taken If you’re new to Facebook ads, it can be hard to know where to start. Should you choose CPM (cost per 1,000 impressions) or CPC (cost per click)? How do you track conversions from an ad? And what exactly is CPA (cost per action)? Here are some answers to common questions about CPA and Facebook ads that will help you determine whether this advertising channel is right for your business. How do I set up CPA? What is CPA marketing? You don’t pay anything up front. Instead, you set a target CPA rate that defines how much you want to spend per acquisition. For example, if your target CPA is $30 and your total costs amount to $50, then you only pay $20. The logic behind setting a target CPA rate is simple: It determines how aggressive or passive you want your advertising strategy to be. Should I use this setting with other targeting options? The CPAs you’ll see at different ad set levels refer to cost per action. CPA ads are useful if you want to control how much you pay for specific actions. If, say, a $50 purchase is worth $0.10 in profit but a follow on social media is worth $0.75, then CPA allows you to pay only when someone clicks through and follows on social media instead of paying each time your ad is shown. Where can I find more information about my costs on Facebook? The best way to find out your costs is by using a CPA calculator. A CPA calculator lets you enter information about your campaign and gives you back what your estimated costs would be. Here are a few different tools you can use depending on where you’re located Is there a difference between advertisers and Page admins? Generally, you can use CPAs only if you’re a Page admin. If you’re an advertiser and you want to control how much money you spend on specific actions, such as a click or an app install, then you should use cost-per-action (CPA) bidding. This is available only if your budget has been set up by a Page admin. General Resources Marketers often use cost-per-action (CPA) advertising as a way to control how much they pay for specific actions. CPA allows you to pay only when people take certain actions, such as filling out a form, watching a video or making a purchase. You’ll need a tracking link on your landing page that will report what people do on your website, so you can tell if they took action—but there are various ways of tracking these types of actions depending on what you want.