CPA in advertising: an indicator that helps promotion

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CPA is an online promotion method in which the advertiser pays not for the display of a pre-compiled offer on selected sites and clicks on it, but for the conversion actions of users performed on the portal after clicking on the ad. The site owner decides which action will be the target one, but usually it is subscribing to a newsletter, making a purchase, registering on the site. In general, everything that speaks of conversion and can bring profit. Pay per action can be set when setting up campaigns in almost all advertising networks, but this method is not optimal for every business niche.

In this article, we will talk about who this marketing model is suitable for, how to calculate the indicator and how to promote using CPA.

Types of CPA metrics
Depending on the goals and objectives of the advertising campaign, there are several types within the “cost per action” model:

Cost per visit. The conversion action is considered completed if the user who went to the page via an advertising offer spent a pre-set number of minutes on the portal. During this time, the visitor can read articles, watch videos or interact with the site in other ways.
Cost per lead. The target action in this model should be understood as filling out any contact form on the site - registration, subscription or ordering a call back. Thus, the business converts traffic into leads, paying only for them.
Cost per sale. Identical to the CPO (cost per order) model, in which the target action is considered to be a sale or order on the advertiser's website. If the user does not pay for the order or returns the product for some reason, the action is not considered completed.
Cost per install. The advertiser pays for each download of files from the site. The model is suitable for those who use lead magnets in the format of any free materials available for download.
Thus, CPA in marketing is a metric that is ideal for businesses with a wide audience and geography: online stores, online training platforms, booking services and other companies offering a mass product. The indicator is effective as an optimal payment model when launching advertising campaigns, as well as for the overall assessment of their effectiveness. It is impossible to make a mistake in the conclusions: the higher the CPA, the more successful the process of attracting customers.

How to calculate CPA
In order to understand how much a targeted user action on on page seo service a website costs your business, you can use several methods.




Manual calculation
This option is the simplest: to set the exact price per lead, simply divide the budget by the number of actions taken.

For example, you are the owner of a car sales company. Naturally, such goods are rarely bought online after studying the site: a manager needs to work with the client. Therefore, it is more rational to choose the cost of ordering a call back as a target action. Having spent 10,000 rubles on promotion and having received 100 form fills, you can determine that each lead cost you 1,000 rubles.

Before calculating CPA using this method, it is important to understand that this amount is not equal to the cost of the client: some applications may be junk, the manager may not be able to reach some numbers, and in some cases, additional efforts will be required to close the deal.

Web analytics data
When setting up advertising campaigns via Google Ads or Yandex Advertising Network, you can choose payment per action among the payment options. In this case, the system will automatically calculate the CPA and display the data in the report.

Online calculators
The cost of conversion can also be determined using online calculators. For example, the functionality of services such as AdWords Performance Grader or AdPerfetto allows you to calculate the CPA indicator. The calculation principle is the same as manually: just enter the advertising costs and the number of conversion actions, and the system will automatically calculate how much each lead cost.

Do not forget that the cost of conversion largely depends on the traffic acquisition channels you choose. In CPA marketing, you can use familiar sources of leads: social networks, contextual advertising, SEO, and targeting. In order for the use of such a model to be justified, you need to carefully study your target audience and, when setting up campaigns, take into account factors such as the awareness of your brand and the level of trust in it by users. Remember that CPA in advertising is, first of all, a direct dependence of the final cost of a lead on the "temperature" of incoming traffic. Therefore, the "warmer" the visitor to your site, the higher the likelihood that he will perform the target action.

In addition, there are specific traffic channels in CPA marketing.

What are CPA networks?
Cost per action advertising networks are resources that unite advertisers and webmasters - arbitrageurs who are ready to assist in attracting traffic.

This method works on the principle of an affiliate network: business owners form an application for advertising, in which they indicate the pains and problems of the target audience, as well as the conversion action that users must perform (for example, subscribe to a newsletter or download a lead magnet). Based on this data, an offer is made - an offer for all webmasters registered on the site. Those who believe that the audience of their resources is relevant to this offer respond to the application.

Accordingly, the higher the CPA indicator, the more the webmaster can earn. The resource itself and its administration in this scheme act as an intermediary: they control the quality of traffic and ensure that advertisers do not receive bots instead of real clients.

On the Internet, you can find both multi-directional CPA networks, where you can choose your niche, and narrowly themed ones. For example, this promotion model is relevant in the field of financial services, advertising of mobile applications, gaming, adult topics.