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CPA (cost per acquisition)

CPA (cost per acquisition or cost per action) is also known as cost per conversion, cost per lead or cost per sale. It is is an online advertising pricing model, where the advertiser pays for each specified action (a purchase, a form submission, and so on) linked to the advertisement. Payment depends either on the cost of lead, cost of sale or a percentage of the sale's revenue.
CPA (cost per acquisition)
Publisher Advantages
  • Potentially highest payout.
Publisher Disadvantages
  • Unpredictable revenue
  • Clicks pay nothing.
  • Some advertisers create banners that do not convert in order to get free advertising...
  • Potentially frauds from advertisers...
Advertiser Advantages
  • The advertiser pays according to results, performance only.
  • Receives exposure even without clicks
  • Low vulnerability to frauds.
  • High correlation between ads and sales or leads
  • Indicator of campaign and banner quality.
Advertiser Disadvantages
  • It can imply higher cost, but also higher ROI.
Ad networks
Best ads networksCommission Junction, Linkshare, Share-a-sale...
2011-04-29 23:00:43
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