There are many ways of advertising, but not all are adequate if you want to make money. As the market evolves advertisers turn to new pricing models that bring proven results to the table. One of those ways can be CPA. CPA advertising can be great at minimizing the risk that is associated with media buying.
“What is CPA advertising”?
CPA or cost-per-acquisition is a bidding method where you only pay if and when your ads lead to an action or acquisition/sale. This is what you want in any campaign, but it’s not easily achievable at all. That’s why this model is more beneficial to advertisers. Who end up shifting a big part of the campaign performance to publishers.
CPA can be calculated by dividing the total ad spend by the total of conversions. The main thing that you need to take away for here is how much you are paying for each acquisition. CPA advertising has a few concepts where you only pay for a view or a desired form of engagement or even further, making sure that the interaction is only considered complete when someone buys our product or does the exact action that you set your campaign for.
“Is CPA advertising worth it?”
Like any other advertising form, CPA has its benefits, and it’s downfalls. The most obvious benefit that we can see is a risk. As you are only paying we people do a specific action your budget will last must longer and overall you will spend less money. You are ensuring that you only pay when you get money, or hen there is a great chance of that happening witch is pretty good.
Compared to other strategies CPA can be great on avoiding “eyeballs” that end up making you spend money and get no conversions.
As CPA advertising might seem good you can lose money when using it if you have low leads to conversion ratio. This happens when you are paying publishers more for leads than what you are getting form sales
If this happens and you have a plan, to covert the leads into sales, that it’s not that bad when this happens because of bad publisher marketing that you need to evaluate the situation.
When you are losing money, you can try negotiating a lower CPA fee with the publisher or simply switch over to a CPA campaign based on sales. Either way, know that the conversion rate you get can make it easy or harder for you to negotiate with a future publisher willing to run your ads with CPA advertising.
How to make money with CPA advertising?
There is a lot of ways that you can make money using a CPA strategy, a popular use for CPA ads is with no doubt growing email databases. In this scenario, the action would be considered complete when the user submits their email, in some form of the lead capture system. Understand that when you capture people’s emails advertising becomes direct, making sales easier.
With the right partner, CPA advertising campaigns can be wildly successful. Consider publishers or influencers a great ally when you are working on a CPA strategy. These are probably the 2 best ways that you can use CPA advertising effectively! Influencers in today’s marketing are huge. There is probably no one moving audiences like them, so putting an influencer working for you on a CPA basis can be a great money-making rout.
Over time, evaluate how ROI from your CPA campaign compares with the ROI of any other campaign you have ever done. If your ROI from CPA is great, then there is no point in using any other campaigns at the moment. If your ROI form CPA is bad, consider switching to CPM or CPC.
Using CPA or not is going to depend only on your campaigns. If it works for you and is making you money, go for it! If it doesn’t, go find where the issue is and solve it. Might not be on your campaign, it could be your banner or who you are working with.
If the problem is within your control go visit our blog, there we have multiple ways that you can optimize your campaigns and ads to start making money.