We have focused on the CPC and the CPM ads networks and their reviews without looking into the CPA ads which we believe some of our readers are looking forward to reading from us. We took a hike to explain what the CPA ads really mean and how a publisher can track his CPA campaign online.
What does the CPA (cost per action) mean
CPA otherwise known as cost per action or cost per acquisation or Pay Per Conversion is seen as an online advertising model where the advertiser pays for specific acquisitions earned. We shall elaborate what we mean by cost per acquisition; this is simply when an advertiser pays for clicks, sale or form submission; this can be extended to contact request and newsletter signup, or better still registeration.
The CPA ads model is often considered by advertisers who use the direct reaponse to advertise. They consider the CPA the optimal way to buy online advertising, as it is that an advertiser only pays for the ads when the desired acquisition has occurred. The desired acquisition to be performed is determined solely by the advertiser. This advertising strategy is basically used by affiliate marketers. In affiliate marketing, this means that advertisers only pay the affiliates for leads that results in a desired action such as a sale.
This strategy reduces the risk for the advertiser because they know in advance that they will not have to pay for bad refferals, and it encourages the affiliate to send good refferals.
Having well stated what the CPA ads mean and the online marketers that makes use of it, we shall now go into describing the ways to track online campaign using CPA ads.
Tracking CPA Campaigns
With the payment of CPA campaigns being on an action being delivered, it is of immense importance that accurate is of prime importance to media owners. This is a complex subject per se, however, if usually performed in three basic ways which are discussed below;
- Cookie tracking
When a media owner drives a click a cookie is dropped on the prospects computer which is linked back to the media owner when the action is performed.
- Telephone tracking
Here, unique cell phone numbers are used per instance of a campaign. So media owners would have their own unique phone number for an offer and when this number is called any resulting actions are allocated to the media owners. Sometimes payout are based on a length of call (usually 90 seconds). If a call goes over 90 seconds it is viewed and there is a genuine interest and a lead is paid for.
- Promotional codes
Promotional or voucher codes are commonly used for tracking retail campaigns. The prospect is asked to use a code at the checkout to qualify for an offer. The code can then be matched back to the media owner who drove the sale.
The CPA is one of the ads monetization types for publishers but it is basically used by the affiliate marketers who need to drive a complete conversion before they could be paid.