CPA is a modern way to promote your business and while the term is attracting views, likes and discussions it becomes imperative to understand what exactly the term means.
Below, you can find 5 things that you should know about CPA marketing.
1. CPA refers to cost per action:
Expand the word CPA and you get the term cost per action. Here click is the action for which a company pays. And more interesting is the fact that both PPC( Pay per click) and CPC( Cost per Click) campaigns are a part of CPA and are different from PPC which mostly refers to paid search marketing like the AdSense.
2. CPA is widely available:
If you though that CPA is restricted to some products and services, think again, as you can find it for a wide range of niches and is as
Here is how the CPA works-
1. User lands on your website.
2. Click the posted Affiliate link
3. Performs the action( It could be filling out a form, completing offers etc)
4. You get Money.
Yes! CPA actually gives you results!
3. CPA is also known as Cost per Acquisition:
Cost per Acquisition is another name for CPA and this name is given because the aim of spending by businesses is to acquire something( particularly new customers= sales).
4. There is a formula to Calculate CPA:
For a company to calculate its CPA, there is a small formula that can help:
CPA= Cost/Number of Acquisitions.
Example- If an individual spends £200 on a campaign and gets 10 “acquisitions” this would give a cost per acquisition of £20.
5. CPA involves risks for the publisher:
Cost per Acquisition/Action is riskier for a publisher as he takes maximum risks because the income, in this case, depends on good conversion rates. Therefore selling on a CPM (cost per impression) basis is more preferred.
With so many interesting details in its kitty, CPA is the method that marketers engage to reach wide audiences. In spite being risky, this method is surely a smart method.