Have you ever heard of CPA? I'm not speaking about Certified Public Accountant 
What does CPA mean?
(3 posts) (3 voices)
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Funny
Cost Per Action refers to actions that are based on sales and registrations. I don't know to much about it. I only recently heard about Cost Per Action. There's always something new with online marketing.
Posted 2 years ago # -
This actually just means that if you display advertising on your site, you only get paid if someone clicks thru on your add and "does" something (the "action) - that action can be a purchase, or a registration or signup for something. The advertiser determines what the action is, and determines what to pay (their cost) based on the value of that action to them.
For example, if you are advertising an ebook that someone is selling for $49, and they will pay you $15 for everyone who clicks thru from your site and purchases the book, their "CPA" is $15 and your "EPA" (Earnings Per Action, aka PPA "Pay Per Action) is $15.
The other two types of models are:
- CPI - Cost Per Impression, in which you get paid for merely displaying the ad. Every time it's shown to someone (a site visitor) is counted as an "impression". The amount you get paid for an impression is generally very tiny since the idea is that you'd have a lot of impressions (if you have lots of site visitors).- CPC - Cost Per Click, pretty much what it sounds like. You would earn a little bit every time someone clicked on one of your ads, regardless of what they did when they got to the advertiser's site.
However, MOST advertisers have abandoned CPI and CPC models because of the high amount of what is called "impression fraud" and "click fraud", in which site owners were fraudulently inflating their own impressions and click in order to earn more.
While Google's AdSense is still a CPC model, CPA is quickly becoming the standard model to earn revenues from your advertising. Generally speaking, if your ads are relevant and the landing page they go to is a good one, this can be a highly profitable model.
I hope this clarifies things a bit!
Posted 2 years ago #
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