Continue to Part II: Cost Per Acquisition Advertising»
IntroductionCPA advertising, or cost per action advertising, is a form of advertising in which the advertiser only pays when a certain action is performed by the visitor. Whereas pay per click programs can drive massive amounts of traffic to a website, that is all that is guaranteed. It's possible to pay for traffic, but still end up not being able to convert a sale. CPA is versatile, and allows the advertiser to set the parameters of the campaign and to only pay for those actions that he decides. For example, if the target for the campaign is to make 1000 sales, the campaign's ads will run in the network until that target is met. Likewise, if the idea is to generate a certain number of qualified leads, that is an option as well.
CostsWhile PPC (pay per click) programs only promise traffic, CPA can actually promise sales, making it a good option for advertisers with tight budgets. As in other forms of online advertising, the advertiser is in full control of his budget, which allows the campaign to run until the objective of the campaign is met.
TimeframeCPA campaigns can show results immediately, or they can run for an unspecified amount of time. Whatever your goal is, the campaign will continue, and your ads will be shown until it is completed.
CPA is the perfect way to test new strategies by seeing how many customers make purchases after seeing your ads. Since these campaigns are variable, advertisers can decide whether to pay per click, per impression, sale, lead, or other variable. The possibilities to test different strategies are wide, making this a good proving ground for new techniques.
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