Ever wondered how some businesses manage to advertise online without blowing their budget? It’s all thanks to something called Cost-Per-Action (CPA) marketing.
Cost per action (CPA) marketing is like a win-win deal for both businesses and their marketing partners. It’s a sweet deal because you’re only paying out cash when someone takes a specific action that benefits your business.
Plus, it’s a fair shake for the affiliate or influencer spreading the word. They get rewarded for driving the action you’re after.
Now, let’s break down why cost per action affiliate marketing is such a big deal today.
Table of contents
What is Cost Per Action?
CPA, or cost per action, is how advertisers pay for ads. But here’s the trick: they only pay when someone does a specific thing in the app or website they’re advertising on.
So, you know how sometimes you see ads on your phone when you’re playing games or using apps?
Well, those ads are placed by businesses who want you to do something, like signing up for a service or buying something in the app.
Now, instead of the business paying for the ad upfront, they only pay when someone actually does what they want – like signing up or buying. That’s what cost per action marketing is all about. It’s like a reward for taking action.
Therefore, if you click on an ad and do what it asks, the business pays for that action. And they decide how much they’ll pay for each action beforehand. It’s kind of like a deal between the business and the app owners.
Good Cost Per Action formula – examples
Here are a couple of good examples of cost per action advertising:
Review websites
You know those sites that compare different products or services and give you the lowdown on what’s good and what’s not? Yeah, those are review websites.
And guess what? They’re awesome for CPA marketing.
Here’s why: when these sites review a product, they usually include a link to where you can buy it. So, when you’re all set to make a purchase, you just click on that link and boom – someone gets paid for your action!
Here’s what a good add banner (from a VPN review site) looks like, with a link:
Splash pages
Ever opened an app or a website and seen a fancy page pop up before you get to the good stuff? That’s a splash page. Big brands like Apple or Disney use them to make a splash (pun intended) when you visit their site or app.
And you know what’s cool? These splash pages can be used for CPA marketing too. Since you’re already on their turf, they might slip in a little ad or offer. And if you take the bait and click through, someone’s getting paid!
A good example from PCgamer is below:
Affiliates and influencers
You’ve probably heard of influencers, those cool folks on social media or YouTube who have tons of followers and can convince you to buy just about anything. Well, they’re big shots in the world of CPA marketing.
They partner up with brands and get paid when they convince their followers to take action – like buying a product or signing up for a service. Therefore, many internet ads, take banners, for example, are also a product of CPA deals between brands and influencers.
They create ads to make more money with the traffic that’s coming from influencers. So, in a nutshell, CPA takes the central stage when it comes to advertising through organic traffic.
CPA offers
A CPA offer is like a special advertising deal. Instead of paying based on clicks or views, advertisers only pay when someone takes a specific action, like signing up or making a purchase.
So, if someone does one of these actions, the affiliate marketer gets paid a set reward.
Why bother with CPA offers?
They’re all about connecting product owners with potential buyers in a cost-effective way. Instead of doing all the advertising themselves, companies team up with affiliate marketers who know how to reach the right people without spending a ton on ads.
And, aside from getting CPA offers from direct advertisers, you can also take advantage of the CPA network. There, you can find exactly what you’re looking for.
A CPA network works as a middleman between affiliates and advertisers, so it makes it a perfect palace for those looking to boost revenue through ads.
Why is CPA Cost Per Action Essential?
Here’s a couple of reasons why CPA (Cost Per Action) is such a big deal:
- Performance-based pay: Instead of paying for ads that might not even get noticed, CPA lets them pay only when someone actually does something they want – like signing up for a service or making a purchase.
- Clear attribution: With CPA, you can easily see which cost per action ads or sources are directly leading to those valuable actions. This helps marketers make smarter decisions for their future campaigns.
- Deeper insights: When you’re tracking your campaign performance, CPA gives you a peek further down the funnel. It’s like knowing not just who came to your party, but who actually danced and had a good time!
- Attracts top marketers: CPA is like a magnet for high-performance marketers who want to make every penny count. They love the transparency and control it offers, knowing exactly where their money is going and what they’re getting in return.
- Media source benefits: CPA is great for both advertisers and media sources too. They attract top-notch marketers who are willing to pay for results. But there’s a catch – they have to front the cost for the ads upfront before they see any returns from the advertisers.
How to Track Your CPA?
Tracking your CPA is not that hard, but it surely offers a clear insight into your business. Here’s how to do it:
- Use UTM parameters: Ever seen those extra-long links with weird codes at the end? Those are UTM parameters, and they help track where your visitors are coming from, like social media or affiliate links.
- Export AdWords data: If you’re running Google ads, you can easily export all your campaign data from AdWords.
- Create promo codes and custom links: Want to track internal campaigns? Just make unique promo codes or custom links. When people use them, you’ll know exactly where they came from.
- Get a CRM system: A CRM system not only helps manage your customers but also tracks where they came from. It’s like having a detective on your team solving the mystery of your marketing success.
- Add form fields: Ever filled out a form and been asked how you found out about the company? That’s valuable info for tracking your CPA. By adding this to your forms, you’ll get a clearer picture of what’s working and what’s not.
- In-house trackers: If you decide to go with CPA networks, they also offer in-house trackers to make it easier for you to see your progress. Based on this, you can make an informal decision on which way to continue.
How to Make Your Cost Per Action Lower?
To lower your CPA, you need to practice a couple of things. First, target the right people. Aim your ads at the folks who are most likely to be interested. Second, make your ads pop. Grab attention and be crystal clear with your message.
Use strong calls to action (CTAs) to show people why they should care. For example, instead of “Sign up now,” try “Feel calmer today” for a meditation app.
Next, improve your ads. Fine-tune your paid search campaigns for maximum relevance. Use the right keywords and make sure your ad matches what your app offers to attract the best users.
But, most importantly, you need to focus on smart goals. With CPA, you’re in control. Focus on actions that bring in money, like sales campaigns. Choose goals that matter most to your bottom line.
Conclusion
So there you have it. CPA marketing is a game-changer for advertisers. It’s a smart move for both advertisers and marketers, ensuring everyone wins.
By focusing on actions that bring in money and building strong partnerships, CPA offers a great way to expand your business without breaking the bank.
