The Effectiveness Of CPA Marketing

CPA Marketing or cost per click marketing is a popular online pricing advertising model in which the payment terms are solely based on qualifying actions like sales or registrations. The advertiser pays only when the customer clicks through an online banner advertiser and subsequently either buys the product, or asks for more product details or registers for a promotion of the product. The payment is made per customer or it can be based on a fixed percentage of the sales produced. This online pricing model is related to affiliate marketing and it does not involve a lot of risk as the payment is based on advertising that produces positive results.

Most companies and organizations prefer click per action marketing when they are advertising certain products and services. This marketing has the advantage of not having to waste money on unnecessary advertising. The Companies and the organizations only pay when actions like conversions, registrations etc, are made. One should not confuse click per action with cost per action marketing. Cost per action does not involve the payment of money on each and every click like click per action. It is only when the relevant actions are performed that payments are made.

CPA Marketing is also popularly known as Cost Per Acquisition as most of the cost per click offers are concerned with acquiring new customers by making sales. This model is also beneficial to measure the effectiveness of an advertising inventory that has been purchased by the company or the organization on a CPA basis. There are two pricing models that determine the pricing mode of cost per click and they are known as the flat rate and the bid based model.

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