How Cost Per Action(CPA) Useful To Increase User Reach

For an advertiser, placing advertisements for their business needs via the internet is a must. Cost per Action or CPA is one method that can provide benefits to advertisers.

As we all know, the internet is now a very promising place for advertisers or marketers to get a lot of customers.

With the CPA, every advertiser can advertise their products on the internet without having to spend a lot of money. Then, what is a CPA? Find the answer in full and in-depth by reading the article on CPA below.

Table Of Content

1 What is Cost Per Action?
2 The Importance of Cost Per Action
3 How to Track a CPA?
4 Ways to Optimize Cost Per Action
4.1 1. Create a Unique Advertising Campaign
4.2 2. Fix Landing page
4.3 3. Analysis
5 What is the difference between Cost per Action and Cost per Acquisition?
6 How CPA Networks Work
7 Why is Cost per Action Perfect for Advertisers?

What is Cost Per Action?

Based on the official length of the Study, cost per action or CPA is one type of online advertising in which advertisers have to make payments when a potential customer takes an action or action.

In this case, these actions can vary, they can buy products from advertisements, register, fill out online forms, and much more. Generally, advertisements placed by advertisers will appear on various websites.

For those who have websites or for publishers, they will receive benefits if there are visitors who are willing to click on ads on their website. Therefore, don’t be surprised if many publishers use this opportunity to get a lot of benefits through internet media.

Indirectly, the CPA method is able to provide benefits to both parties, namely for publishers and advertisers.

If the publisher earns money, then the advertiser actually expands the reach of more customers.

CPA is a branch of the affiliate advertising model. So, this form of advertising is one of the most promising advertisements for marketers.

The Importance of Cost Per Action

After we know together the meaning of CPA, then, what is the importance of CPA to be applied by advertisers in creating advertising campaigns?

Sourced from the Oberlo page, one of the advantages of using CPA is that advertisers can control advertising costs which is useful for specific marketing purposes.

Why? Because as we discussed earlier, advertisers will only get a bill when potential customers take action from the ads that have been installed.

For example, let’s say an advertiser from the PT ABS company places an ad in order to promote their application and invite potential users to download the application.

In this case, advertisers can set their advertising promotion budget with a CPA strategy. This of course can help marketers and companies in allocating their budget funds to advertise.

How to Track a CPA?

One of the things you should pay attention to when implementing CPA ads is that you have to analyze the performance of each ad that you have run. To track or analyze it, advertisers will usually use certain tools such as Google Analytics.

By using Google Analytics, you will get information on which users clicked on which ads, where the website came from, and much more. This is very important to maximize CPA ads in the future.

How to Optimize Cost Per Action

Previously we already knew that CPA can provide great benefits for advertisers in the digital marketing process. Then, how to optimize it?

Well, how to optimize CPA is as follows:

1. Create a Unique Ad Campaign

Make the ad you want to convey to your customers as unique as possible. This is done so that it can foster a greater sense of interest in your customers in your ad, so that they are willing to take various actions.

One of the unique and interesting ways to create a CPA ad campaign is to maximize copywriting and ad design. Make sentences that are persuasive so that potential customers can be interested.

2. Fix the Landing page

What does the landing page have to do with CPA? The answer is that when potential customers or audiences click on your ad, it will direct the audience to the landing page that you previously created. For that, try to adapt the ad to your landing page.

For example, if you invite your audience to download an app on your ad. Then create a landing page that directly leads to the audience to download.

3. Analysis

As previously explained, doing a performance analysis when your audience is browsing your website is one of the things that you must do.

So, you can find out how long they last on your website and what reasons make them want to close your website quickly. Based on this, later you can fix anything that makes the audience uncomfortable with your website.

What is the difference between Cost per Action and Cost per Acquisition?

Previously we discussed together that Cost Per Action or CPA is a branch of Affiliate Marketing, which is basically the same as Cost Per Acquisition. So, what is the difference between the two?

Cost per acquisition is basically the value or price for one acquisition made by the audience. Even though they both produce acquisitions, they both have significant differences.

Generally, this term is often used in Google Adwords or other types of affiliate marketing businesses. Well, here are the branches or derivatives of the CPA:

  • Cost Per Lead: An advertising payment model in which an advertiser will pay the publisher for each lead. This type does not require publishers to get conversions in any form, be it sales or sales.
  • Cost Per Sale: The type of payment in which an advertiser will pay the publisher in the event of a sale. CPS is a type of CPA that provides a higher commission than other types of CPA.
  • Cost Per Install: A type of payment in which an advertiser will pay a publisher every time an audience installs an application. Generally, this CPI is used to promote smartphone applications.

How CPA Networks Work

Then, how does marketing work using the CPA payment system?

For example, let’s say there is a game company that wants to get 100 thousand downloads. The company as an advertiser will use CPA as its advertising method. In this case, the advertiser will pay the CPA network in order to achieve the goal of 100 thousand downloads.

On the other hand, the appointed CPA Network will distribute the commission given by the game company every time an audience downloads the game application via the affiliate link to each publisher who is part of the CPA Network.

Why is Cost per Action very suitable for Advertisers?

CPA is an advertising model that allows each advertiser to control the advertising costs incurred for the purpose of a particular marketing strategy. Basically, CPA is a method created to charge a fee when an action or action has occurred.

So, later the advertisers do not need to spend too much money to advertise. That way, the sales conversion rate will be higher than other advertising strategies. In particular, if you use a Cost per Install strategy.

An action-based payment model, this will give advertisers better control over tracking and maximizing return on investment across their various marketing channels.

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