- What is CPA in advertising?
- How does CPA model work?
- 3 tips for launching CPA campaigns
- CPA Benefits
- To sum up
What is CPA in advertising?
What if, instead of focusing on awareness metrics like impressions and clicks, you could pay for leads and conversions? Here comes CPA bidding model! This is a game changer in digital marketing. Really! CPA marketing allows businesses to get measurable results, track leads and effectiveness of ad campaigns, calculate ROMI etc. That’s why performance marketing is one of the fastest growing forms of digital advertising types.
Let’s start with the basics. CPA stands for Cost-per-action or Cost-per-acquisition.
This digital marketing term have 2 meanings:
1. Campaign optimization metric Advertisers use CPA to measure the cost of acquiring a new lead or customer. Rather than focusing on the number of clicks, CPA focuses on actual conversions.
2. Pricing model When we talk about CPA as a pricing model, we mean that advertisers pay per a specific conversion: registration, app install, filling out a form, sale etc.
Getting conversions at the targeted prices is a perfect strategy for every marketer! CPA is suitable for both experienced and rookie marketers. Beginners will be able to test new offers quicker without a deep dive into data analysis. Advertisers who already have launched campaigns will be able to drive more conversions for less money. Below you will find out how it works.
How does CPA model work?
Before you start paying only for conversions, your ad campaign needs to go through a test period. During this period, our algorithm determines the spots and countries that bring conversions (leads).
Initially, you pay for impressions and for conversions, so the cost per lead will be temporarily higher. After the end of the test period, you will only be charged for conversions. Keep in mind, your offer will only be promoted in zones (ad spot + GEO) that brought you leads during the test period.
3 tips for launching CPA campaigns
Choose a simple cost per action that happens once a day or more often. It’s very important that a conversion comes as soon as possible in order to keep the campaign rotating. As an action, advertisers typically choose one of the following actions:
- Filling out a form
- Clicking on a button
- App install
Create separate ad campaigns for different traffic types. We have 3 traffic types: RON, Prime and Members Area. This is required for more precise campaign management and analysis of the performance of each ad spot.
We recommend creating a separate campaign targeting xHamster. This is our biggest exclusive publisher. To target xHamster or other Premium website, you have to add a site ID (or spot ID) to the whitelist.
When testing a new offer, we advise you to set a higher CPA price - at the level of 65 - 95% of the payout. This will help you get more traffic during the Test period. With the right targeting, quality ad creatives and performing landing page, a higher CPA rate will give you an edge over your competitors. After the first results, try different CPA rates to get the middle ground.
- Saves time on campaign optimization.
- Improves campaign performance.
- Suitable for all ad formats.
- Works with any vertical.
- Increases your ROI eventually.
To sum up
In a nutshell, CPA bidding model is designed to improve your marketing performance. It’s really valuable as it gives you more time to improve your ad creatives and landing page performance instead of constantly monitoring your stats. No matter what offer or advertising format you selected, it is suitable for everything.
Follow the best practices to get started and not be disappointed. Start with a higher budget and select a higher CPA rate to get more traffic and therefore more conversions. Do not worry if the campaign has not passed the test period. Just try different options and evaluate the results!