CPA Marketing

 

CPA Marketing

What is CPA?

CPA, or cost per action (as this abbreviation stands for), is an online advertising payment model in which the advertiser only gets charged if the potential customer has performed the targeted action they want. All the actions the model can cover always work for a specific type of conversion. That could be, for example, filling in a feedback form, subscribing to a newsletter or registering on a website. Therefore, cost per action refers to digital marketing strategies.

What is CPA marketing?

The CPA marketing term is quite broad. It is a more effective and profitable alternative to targeting and contextual advertising, which only work for displays and clicks. Unlike them, in CPA, an advertiser can significantly save resources because they only pay for what directly benefits them. There are special CPA marketing networks and platforms with built-in algorithms to monitor the targeted actions and partnerships between advertisers and partners. They monitor the fulfillment of the conditions set by the advertiser and transfer the commission to the partner in the amount he has earned.

How does CPA marketing work?

To understand how cost-per-action marketing works in practice, first, we need to list the key players:

• Marketers, freelancers, opinion leaders, or bloggers who partner with a business and promote its products through its website, blog, and authority.
• Advertisers: these companies seek out the above-listed individuals to push ads online.
• CPA networks: these platforms bring together affiliates and advertisers, i.e., help them find each other. After registering, the companies place their offers on the site, and the partners review and select suitable offers. Each platform calculates the cost-per-action formula independently.
• Visitors: these are the average users that CPA marketing is targeting. It requires the visitors to take the targeted action the advertiser wants (e.g., click on a banner) and therefore gets to the company's conversion rate.

Let's break down the meaning of CPA marketing using a practical example:

For instance, a well-known travel blogger named Richard travels the world and often tells his audience in his videos about what hotels he stayed in, which restaurants he ate in, how he got to his destination, etc. Simultaneously, Trevi offers bargain flights and lodging services. Both register with the same CPA network, through which they see each other's offers and start collaborating. Since Richard is a travel blogger, Trevi and its products match the theme of his channel and, therefore, the audience's needs. Richard recommends to his viewers the tickets he bought at the lowest price on Trevi and the hotel he stayed in for half the regular price, thanks to the company. The CPA network receives a percentage every time one of Richard's viewers clicks on a banner in his video leading to the Trevi website. Richard gets a commission, and Trevi gets potential customers.

Affiliate CPA marketing

As already mentioned, the definition of CPA marketing is quite broad and, therefore, almost universal. For example, CPA marketing often combines affiliate marketing programs, which involve creating a network of distributors (the same partners) who promote and sell a specific company's product for a commission. When affiliate marketing gets coupled with CPA, the affiliate can expand their revenue sources and promotion channels. In addition, it gives affiliates more tools and solutions for working with buyers and the buyers themselves, a variety of content, and forms of motivation.

Mobile CPA marketing and networks

Mobile CPA marketing is the same as classic CPA; only it involves placing ads on smart devices with operating systems such as iOS and Android.

A mobile cost per action looks like this. A company enters into a partnership with a mobile application that places a banner or a mini commercial. The mobile app gets its profit percentage if a smartphone user clicks on it and performs a target action specified in the conditions. It looks the same as YouTube ad inserts, and only they are embedded in the gameplay or even the app's mechanics on your phone.

There are separate networks connecting mobile app owners and advertisers for mobile CPA. With their help, app owners can further monetize their products, especially since such CPA networks often charge even lower commissions than traditional web platforms.

Is CPA marketing legitimate?

Yes, CPA marketing is 100% legit because it is considered digital marketing and incredibly popular today. When you join it, you enter into an electronic agreement with the network and partner of your choice, guaranteeing that your terms and conditions are met, and that rewards are fairly distributed. The main thing is to choose only proven and well-known CPA networks with strict algorithms, ensuring that your partners don't cheat you by scamming conversions. The same advice applies to the partners: do not use conversion mechanisms because, for such a thing, you can get a lifetime ban in CPA marketing networks and a lawsuit for fraud!