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SEMrush Blog

What Websites Should Use Cost Per Action (CPA) Advertising?

SEMrush Blog
What Websites Should Use Cost Per Action (CPA) Advertising?

Cost per action (CPA) marketing is one of the most effective methods of advertising online. Marketers have been making use of this technique for the past several years and reaping the benefits. It is a great way to capture leads and attract more people towards your website. From there on in, it is a case of converting the leads into customers and improving your bottom line. In other words, you will find few other online marketing methods that deliver the results you are looking for.

So, what is CPA advertising? The term itself is quite self explanatory. You incur a cost when an action is performed. This is as simple as the definition for CPA could get. Basically, your ad is published on a website. The publisher will obviously demand some remuneration in return for allowing you to place your website on his/her website. However, you only have to pay the publisher when the desired action is performed. If the action is not performed, you don’t have to pay at all.

The logic behind this payment model is quite simple. If the visitors to the website don’t perform the action, there is little chance for you to convert them into customers and earn money. What this means is that unless you are earning revenue, or getting a chance to earn revenue, you don’t have to pay for the ads that you have published. So, you don’t bear any cost until and unless you get to see the results of your campaign actually bearing fruit.

People often confuse CPA marketing with PPC marketing. Pay per click marketing is something completely different. In that case, you have to pay the publisher every time one of your ads is clicked on. The rest of the process is the same. The user is directed to your website or landing page where he/she has to perform an action. The action could be purchasing a product or filling a form. Regardless of what the action is, you don’t have to pay if it has not been performed.

This means that the risk involved in Google CPA is much lower than with other online marketing techniques. There, you have to invest the money and wait for results. Here, the investment is tied directly to the results you get. Therefore, it is not as if you have to wait for ages to get people to perform the desired action. As soon as your ad is published, people will start seeing it. If they are interested in it, they will click on it.

More importantly, the risk of click fraud taking place is also low. Often with PPC campaigns, the publisher gets bogus clicks performed and shows it to you. You have to pay for each click even if it is not genuine. For advertisers who don’t have a large budget to market their offers, CPA remains a viable alternative. They can use cost-per-action to their advantage and get the results they are looking for without having to pay through the roof.

So, which websites should use CPA? This is a tricky question. For one, there are no restrictions as to the type of website that you need to have in order to run a CPA marketing campaign. As long as you have enough space to put ads up, you can use it for CPA. Of course your revenue will depend on whether or not the users actually perform the desired action but at least you don’t have to spend any money on it. It is a win-win situation.

However, if you want to run Google CPA, you need to show that you have a sizable audience. You will also have to prove that a large number of regular visitors come to your website on a regular basis. Otherwise, your website will be rejected as far as CPA is concerned. You can actually shop around and look for an advertiser that is willing to pay a high price for the ads you publish on your website for his/her campaign.

So, these are some of the websites that should use CPA advertising. Not only can you offer this as a service but also run a campaign for promoting your own website.

This profile is specifically designed for our old blog posts.

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