CPA partnership: how does it work?

In Q3 2017, for the first time, the Russian market of Internet advertising outperformed the TV segment in terms of volumes. Over the period of July-October, its revenue was 41 bn RUB compared to 36 bn RUB of TV ads. Internet advertising is based on CPA marketing. Read the article in order to fill in the gaps in your knowledge of it.

What is CPA marketing?

CPA (Cost per Action) is a marketing model. According to it, advertisers buy particular actions performed by their target audience on the Internet.

CPA marketing has two main directions:

• CPL (Cost per Lead) – this system is also known as payment for a lead, which implies leading a client to take an effective action such as registration on the site, subscription or filling in a form;
• CPS (Cost per Sale) – a model used to make a user visit a website and buy some product.

These CPA marketing types are sometimes regarded as independent. In fact, being used in affiliate programs, they have a lot in common.

CPA process and participants

CPA system involves advertisers and promotion platforms. By the way, advanced marketing also embraces webmasters and affiliate networks.

Anybody in need of their products and service promotion can be an advertising client. An advertiser should necessarily have an online platform, a place for a partner to lead customers.

To implement it, an online shop, a thematic website or even a page in the social network would be a perfect solution. The most important for the resource is a tool to perform an effective action.

Having entered into an agreement, partners receive a referential link. Each clickthrough followed by a targeted operation counts. That is how the channel performance is defined.

So, who are partners? They can be owners of either informational platforms or webmasters spreading referential links on various websites. Online media, social networks, text or video blogs, and other services can be platforms.

Webmasters also use mailing lists. However, this method is likely to become spam, which is beyond the principles of affiliate marketing.

What is more, CPA networks are special intermediary trading platforms where advertising clients and partners communicate. By the way, these platforms ensure the security of their partnership.

Peculiarities of CPA methods

The abovementioned types of CPA marketing also have subcategories. They are classified in accordance to a paid targeted action. Look through the following examples.

The main CPS method is CPO (Cost per Order). It implies payment for an order made in an online shop without pre-paying. A partner gets either a previously agreed amount of money when gaining the set number of orders or a cut from each purchase.

CPL is notable for two methods: CPI (Cost per Install) – payment for the installation of an app or a program and CPC (Cost per Call) – for a call of a potential client. They don’t guarantee a trading operation. However, when used together, the methods can promote a wide range of products.

CPV (Cost per View) – payment for page, banner, roll impressions, etc., and CPС (Cost per Click) – for a click and a clickthrough to a referential link are less popular. Lower targeted traffic explains it.

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