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Cost per action or CPA, also known as pay per share or PPA is a form of affiliate marketing. The affiliate (publisher) pays the commission to the merchant (advertiser) for each specific action.
Out of the action involved in making a purchase, the action could include, (but is not limited to) impressions, clicks, complete online forms, for example contact request, newsletter, registration to alago, etc.) or double opt-in.
This type of marketing is for people who are Internet marketing experts who have already been quite successful as affiliate marketers. Learning CPA marketing requires you to sign up with companies or networks that encourage CPA marketing such as Comission Junction, LinkShare and others.
Each network has its own terms and conditions, so be sure to read these carefully to know all its guidelines, included in the payment structure. There are different types of cost per share ads, which vary depending on the measures taken.
Types of cost-per-share advertising
Cost per lead is another way of cost per share, it is a method by which advertisers can reach potential customers. In general, it means that the consumer subscribes to something by putting their contact information as or may include completing a form which requires the user to provide additional information, for example demographic data.
For the calculation of cost per share, you simply take the cost and divide it by the number of acquisitions. The number of acquisitions is calculated by multiplying the number of impressions by the CTR (Click Through Rate) in percentage and by the CR (Conversion Rate).
To measure the effectiveness of a cost-per-action advertising campaign, you have to compare it with other similar types of campaigns. This is known as effective cost per action (ECPA). CPA is commonly compared to the cost per click, per impression.
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Cost per click means that the advertiser pays when someone clicks on the ad. Usually you get better results with cost per action advertising than with cost per click, because with CPA you only pay when a person is sufficiently interested in what you are selling and fills out a form or actually buy. This shows a more real interest than just clicking.
Cost per impression or Cost per thousand means that you pay for every 1000 impressions. An impression is carried out at any time when a banner or other type of advertisement is shown to a user on the screen of his or her computer. Cost Per Mil deals with how many times an ad appears, but viewers can not even see the ad. Cost per click is a better option than the PRC, because at least it is known that the person is sufficiently interested in the product or service and clicks to obtain more information about it. Better yet is the cost per share, when the person is very interested makes a purchase or asks for more information.
Advertising method very convenient for advertisers
Advertisers consider the CPA the best way to buy online advertising, since you only pay for the ad when the desired action has taken place. The desired action to be taken is determined by the advertiser. In addition, this can be a great way to generate leads since a visitor who is willing to sign to obtain information can become a future customer.
Originally published at www.5to9news.com.