CPA is an abbreviation for Cost-per-Action. It is a type of affiliate advertising. Before CPA came along, the usual thing was for advertisers to pay for clicks but with the CPA model, they now pay for specific action requested such as making a sale or generating leads.
CPA Networks’ market share has continued to grow in recent times and more publishers and marketers are seeing the advantages of CPA network over the pay-per-click model. In an economic downturn, advertisers tend to pay very little which reduces the marketer’s return on investment. This is because when people pay less, it is difficult for the marketers to predict returns on their advertisement. In this kind of situation, pay-per-click would cost the marketers more. This is why many marketers are now switching from the traditional pay-per-click to CPA networks. With CPA networks, the marketers create adverts that will benefit himself and the publisher. He only pays for the action that is to be achieved by the publishers.
The Cost-Per-Action model places emphasis on compensating the publisher or an affiliate for a specific action performed on his website with the materials provided by the advertiser. Some actions include purchasing from an online store, registering, filling out a questionnaire, subscribing to a newsletter and any other thing required from the affiliate.
If you are new to the CPA network model, here are a few steps that will enable you to make a switch from pay-per-click to cost-per-action model.
• First of all, you need to register with a network as either a publisher or an advertiser. If you want to join and you don’t already have a website, then you need to get one. Even though it is possible to get accepted into some networks without a website but having one will increase your chances of being accepted into most networks. If you are an experienced marketer or publisher and you plan on running the adverts on your website, you can simply apply with your current domain.
•You may be assigned a manager by some CPA companies. The manager will help you with everything from setting up your web profile to promoting your business but on the internet and off the web.
• Your transition process is complete when the CPA verifies your profile. Your site will be added to the system once this is done. This will enable you to search for offers from around the world.
• You have the opportunity to try out these offers for a given period to understand which suits you better. Some CPA network companies provide special statistical reports helping you analyze your mistakes and make necessary corrections to improve your campaign. This reduces cost and improves your visibility to your target market.
- Advantages Of Cost-Per-Action Network
- 1. Multiple Market Entries From Around The Globe.
- 2. Access To Security Technologies
- 3. Cost-Effectiveness
- 4. Improved Traffic
- 5. Reaching New Markets
- 6. Unaffected By Economic Crisis
- 8. Makes Business Easier
- Boosting Conversion Rates
- Groups Of Cost-Per-Action Network
- Single Segment Network
- Multi-Segment Network
Advantages Of Cost-Per-Action NetworkThe CPA networks have many benefits for both the advertisers and publishers. These benefits are discussed below.
1. Multiple Market Entries From Around The Globe.As an advertiser with the glob CPA network, you have the opportunity of getting multiple market entries around the globe. You have access to many affiliated publishers who will assist with communication and cooperation.
2. Access To Security TechnologiesYou are secure and immune from fraud in a global CPA network because security is ensured by the network. With this, you have little to worry about.
3. Cost-EffectivenessThe CPA model saves you cost because you do not have to incur additional expenses when making the budget for your online campaign. When you start to advertise through a CPA network, you will not get paid for any general advertising activities. You will begin to earn money on specific actions.
4. Improved TrafficJoining a CPA network will increase your website traffic. This means more commission for you.
5. Reaching New MarketsThe CPA network provides you with the opportunity to reach and work with top advertisers and brands. Working with a global CPA network helps you conquer geographical limitations. You get to reach new markets in different parts of the world. This means increased traffic and revenue for you.
6. Unaffected By Economic CrisisJoining a CPA network that covers multiple industries shields you from the ups and downs of the economy within a particular segment because you have a lot of other options.
8. Makes Business EasierJoining a CPA network is a win-win for both publishers and advertisers. Both get access to many global markets and affiliate partners while the network provides them with the platform and technical support that they need.
Boosting Conversion RatesDriving targeted traffic to your website is the best way to increase your conversion. This means that you need to target your offers at customers who would likely pay for them. These targeted customers bring targeted traffic to your site when they perform specific actions. This boosts your conversion rate.
Groups Of Cost-Per-Action NetworkThere are two groups of Cost-Per-Action network based on their marketing orientation. A CPA network can be a single segment network or multi-segment network. Let’s look at the features of each group.
Single Segment NetworkThis group of CPA network is focused on a single segment. It could be travel, mobile or any other segment. The publishers and advertisers in this group have an in-depth portfolio on the segment the network chooses to focus on. So you cannot get a multi-segment list of offers from this kind of network. This type of network is easily affected by economic crises because there are no alternative options to fall back on.
Multi-Segment NetworkThis network has a list of offers from many segments of online business, and they operate on a global scale. They work with top brands, provide innovative tools and make payments in all currencies on a weekly basis. This kind of network is not adversely affected by economic crises in any particular segment because there are many other segments to rely on.
The CPA network has proven to be effective and more advertisers are taking advantage of this. Joining a CPA network will help you save cost and achieve great results in your advertising campaign.