They currently exist. You have to choose between a large number of optionsbut it is also important to know the different payment models that exist. One of the most coveted by advertisers is the CPA, which we will discover below that it is not always the best option, since it will only work well if it is suitable for the campaign that is going to be carried out.
Within the world of online advertising there are countless acronyms and abbreviations related to new payment models, which is why it is very important do not confuse the CPA as “Cost per Acquisition” with the CPA as “Cost per Action”, since there is a big difference between them. The Cost per Action or also called cost per conversion, remunerates only specific conversion actions, for example impressions, clicks, registrations on a form page or even sales.
What is CPA as Cost per Acquisition
The Cost per Acquisition (CPA) or also called cost per sale is a for online ads, where the advertiser only pays when their online ad leads to a sale. The objective of this cost model is to achieve short-term sales, guaranteeing a profitable ROI for advertisers, since the media will only charge when the sale is formalized.
The payment model, CPA can have a fixed price, where the advertiser will pay the same amount of money for each sale made through the online ad regardless of the amount of the acquisition. This model is very beneficial when the advertiser’s ecommerce shopping carts are of very similar or identical prices. On the other hand, the CPA can also have a variable price.normally a percentage of the sale amount, where the advertiser will pay a commission to the support on the sale that has been made through the online ad.
Uses of CPA within online advertising
Within online advertising, not all types of ads usually use CPA as a payment model, since, for example, text ads in search engines normally use CPM (Cost per thousand impressions) or CPC (Cost per click), although not always.
There are many options when it comes to promoting yourself on the Internet, but the most common uses of CPA are in marketing and display campaigns. For this, dynamic banners are usually used with specific offers, trying to achieve a greater number of sales. The CPA or cost per sale is especially used in or campaigns, which are actions focused on the final purchase of products.
The most coveted model by advertisers
The CPA is one of the most coveted payment models by advertisers, since it assures them the profitability of their ROI. But keep in mind that it may not always be the most appropriate model, you must always take into account the type of company and the objective of the campaign.
For a branding campaign, the CPA is not the most appropriate model, since the objective of these is to generate visibility for the brand, for which it would be preferable to use a CPM (Cost per thousand impressions) than a CPA, since it is usually cheaper in addition to reaching a greater number of users.
However, for traffic campaigns or conversions, the most obvious model is the CPA, since the advertiser ensures that qualified traffic arrives, ensuring sales. So that The CPA is only recommended to be used in already consolidated companies or with active branding campaigns.
The point of view of the supports on the CPA
The process begins when an ecommerce decides to advertise on the Internet through, for example, a banner with a special offer, its objective being to achieve short-term sales, so will hire a CPA payment model. To carry out this type of action, the advertiser must contact support, which will be in charge of placing the banners on different websites visible to all users and when one of them clicks on the ad, it will take them directly to the advertiser’s website where if you make a sale you will receive a commission from the advertiser.
The CPA does not usually attract the supports especiallysince although this model is very beneficial for advertisers, it is not so much for them, because they are the ones who bear the entire risk, since if the user decides not to buy, they will not receive any commission and would advertise to the advertiser for free.
For this reason, when a medium has to choose between different advertisers to launch campaigns, in situations where they are similar, it may be more profitable to launch a CPL (Cost per Lead) campaign. at a price higher than a CPA, since they consider that they will work better, because the process that the user must go through is shorter.
In summary, when choosing a payment model for an online campaign, you not only have to think about the final sales, but take other factors into account to obtain the maximum benefit.
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