Definition
It is a model of subscription for online marketing. This subscription is established on certified acts, including registrations or sales.
Information:
A CPA contract specifies that it is normal to have registrations and sales along with acts connected straight to any form of conversion. It does not involve agreements founded on clicks only, which are especially known as CPC or cost per click.
CPM (cost per impressions) model is on the other side of the scale from the CPA (cost per action) model, while the CPC (cost per click) model lies in between these two models. The publisher takes a major risk regarding marketing in the cost per action model as their payment depends upon adequate conversion rates from the creative units of the marketer and website.
Advertisers have many choices when searching for CPA contracts. Publishers having a surplus amount of substantial inventory may agree to take account of unconventional proposals. Sites offering programs containing special attractions can provide CPA pricing on many kinds of leads. However, the standard caveats regarding traffic with incentives continue to pertain all the same. It is possible that performance marketing is the most common operation of pricing based on performance in accordance with which traders/advertisers decide how much they want to reimburse and which acts they desire to remunerate.
Helpful Articles to Understand CPA (Cost Per Action):
Benchmark Your CPA
ClickZ (February 2, 2002)
It’s CPA Time… or Is It?
ClickZ (January 1, 2001)
CPA Is Not the Holy Grail of Marketing
ClickZ (January 12, 2001)
CPA – Winners and Losers
ClickZ (October 6, 2000)
Cost Per Action Pricing – Risks And Benefits
ClickZ (August 16, 1999)
Cost Per Action Ad Pricing
ClickZ (August 23, 1999)
Source : Krcmic.com
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