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What Is Cost Per Action (CPA): A Quick Guide

quick-guide-cpa-postCost Per Action or CPA is an online marketing strategy and advertising model, in which a customer pays only when a user look at the display, a certain action is carried out. This action, which is determined by the owner may, to form a simple click-rich submission and purchases. Since the advertiser is only obliged to pay if the desired effect, CPA is considered an ideal online advertising strategy. For this reason, CPA is often Per Action Pay-called. But CPA is often referred to as cost per acquisition, as most customers want this strategy to make people buy something.

Clicks vs. action

Usually, the performance of a website is determined by measuring the number of clicks made on the website. The number of clicks to the site and leading within the site indicates if web traffic is heavy or not. Under such conditions, carry high traffic websites well. But the cost per action model, clicks do not matter as much as the actions taken by the users within the website. In CPA advertising, the performance of a website is measured by how often users a predetermined action. Typically, these actions include the purchase of products or services, downloads, travel bookings, email and newsletter sign-ups, video views and more.

Compared with pay-per-click, CPA or Cost Per Action is a more accurate way to determine the performance, as advertisers for accurate results to pay, they are looking for. And because the customer pays only when a user performs an action, they can assign better manage their resources and adjust the budget if it is necessary. Ideally, advertisers figure out how much money they are willing to spend on a CPA before using it.

CPA and CPL

Cost per lead or CPL is another online marketing technique related to CPA, but with a distinct difference. In CPL, the advertiser chooses to interest paid guide given by a user, while paying a CPA strategy of advertisers for a particular action by the user. In CPL, the goal is to get information from the users of the advertiser an idea of ​​the nature of the market is interested in their products or services to give. There are two basic differences between CPA and CPL:

One, CPL campaigns are more controlled by their advertisers. The advertiser decides which sites you want your ads to appear on. Meanwhile CPA campaigns are more publisher-centric. This means that publishers are those that select the advertisers and the ads they want to display on their websites.

Two, CPL campaigns are usually mild and high-volume, they often require only basic information from users, such as name and e-mail address. On the other hand, usually CPA campaigns require more details such as age, sex, address and often, credit card information.

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