(e.g., homeowners, parents, chicago)  
 
 
 
    Consumer   Local
    B2B   Ad Networks
    Demographics
 

Just what is cost per action advertising?

Like most marketers, we've probably heard the term "cost per action" or seen its initials: "CPA"... but are still fuzzy on what it means. It's kind of like paid search right?

Cost per action or CPA is a type of "pay for performance" advertising... you only pay if a potential customer takes a desired action. In that sense, CPA is like paid search, except the action isn't a click, it's a prospect signing up for an "offer" like a free gift card or free product trial. And you only pay when that action happens!

Should you consider CPA advertising? Some things to keep in mind:
  • Your offer needs to be extra compelling as many Web users "have seen it all" and you'll be asking them to do more than simply view or click an ad banner.
  • You'll need to find an ad network willing to take your offer since the flip side of CPA is that ad networks promote your offer... but only make money if your offer generates results.
  • Paying for actions will be more expensive than paying for clicks... potentially a lot more! Ad networks can help you figure out what you'll need to pay for actions. Run the numbers to make sure the return on investment works.
  • CPA is not an overnight sales booster. Once an ad network takes your offer, it still has to distribute the offer to its network of "affiliates" which can take time.

Here are 5 tips on how to get started:

1. Indentify ad networks to consider (there are lots!) Not sure if they do cost per action advertising... Just look on their website to see if they refer to their "affiliate network" or mention CPA as one of their pricing methods.

2. Ask what CPA offers work best with their audience. And then create a compelling offer based on your product or service.

3. Test your offer or a month or two to see how many users will actually take action. And re-run the numbers to confirm the ROI still works.

4. Test multiple ad networks to find out where your offer works best.

5. Keep a close eye on your progress so you can make quick changes to your offer or budget as needed.

Cost per action advertising is a great way to generate customers so you should definitely consider it for your marketing mix. To get started, just type in "CPA ad networks" in our search box... and take it from there!

 
 
 
Services
Resources
Advertising
My Profile
My Searches
My Publishers