Target Action is Determined by the advitiser.
by Michael Prather
The cost-per-action (CPA) model is at the other end of the spectrum from the cost-per-impressions model (CPM), with the cost-per-click (CPC) model somewhere in the middle. In a CPA model, the publisher is taking most of the advertising risk, as their commissions are dependent on good conversion rates from the advertiser's creative units and Web site.
CPA advertising, in conjunction with proper testing and tracking of ads, puts an end to shooting in the dark. Business owners, especially those who are operating exclusively online, love CPA because they are enabled to cleanly figure out how much it costs them to get a lead, and how much it costs them to get an actual sale. Cost Per Action (CPA) is expressed here as a monetary value. So, if you owned a business and you had made 12 sales and you had to pay for the clicks on 120 of your ads to get them, your CPA is 10. To get plenty of CPA action, you have to keep adding constant content to your website or blog so that you attract a wide readership. By placing links to your site at forums and social networking sites, and by using smart SEO techniques, you can build yourself a loyal and ever-growing visitor ship and build that CPA affiliate bank. One significant advantage of the CPA advertising model is checking the number of redundant clicks based fraud, at times effected using automated means which normally misguide the effectiveness of the advertisement campaign.
Practically, the CPA model fulfills the goals of the online marketers more adequately and also facilitates formulating marketing strategies based on the CPA results. The marketers can use the CPA results further into deriving the "Cost Per Acquisition" and use it for online sales projections and forecast. Cost Per Action based campaigns are considered highly effective and beneficial to the advertisers. Google AdSense has added this feature to its advertising pricing models as has eBay and other search engine Web services. You spend a little bit of money but, for fast results.
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