Cost per Acquisition (CPA) concept
What is the Cost per Acquisition or CPA?
The CPA, also known as Cost Per Acquisition or cost per sale, is a payment method that is defined within the online commercial promotion. It is characterized because the advertiser only pays for each sale that is achieved through an advertisement. You do not have to pay to appear in a specific format in a place with many impressions, or to reach a specific number of impressions. The only valid criterion to make the payment is the sale achieved.
A system that considerably limits the possibilities when the support receives money for the commercial promotion, but which in turn guarantees a greater return on sales. It is normally used to obtain an increase in the sales index in a short period of time and its pricing is something that always depends on the number of sales made.
The most usual thing is that the advertiser indicates a price to the support for each conversion that is achieved, multiplying by the total operations achieved. In this way, in the face of the web where the ad is hosted, the priority becomes leading readers to make the purchase, either through additional campaigns or different strategies.
The Cost Per Acquisition extends over many areas, always within online marketing, and is one of the favorites of advertisers, since it guarantees a greater return on economic investment in commercial promotion, unlike other formats such as CPC or CPM.
What is the Cost per Acquisition for?
The CPA serves as yet another model when developing online advertising campaigns. For the company that makes the announcement, it is a system that helps to optimize the money invested in commercial promotion; for the advertiser, something that allows you to get benefits in exchange for the sales you get, such as a kind of commission for the service provided.
Its purpose is to determine a different and much more efficient payment model; but especially with a higher economic performance.
Examples of Cost per Acquisition
CPA we can find many. Since it is a payment system, it is possible that it is behind any banner, email with product promotions or other initiatives that encourage the purchase. Amazon, for example, offers an affiliation system that carries a Cost Per Acquisition mechanism in the purest sense of the definition.
There are many more cases spread over the networks; but the vast majority of commercial promotion formats that encourage purchase or hiring are usually governed by this system.
More information on Cost per Acquisition
Even though it is one of the systems least accepted by the media when accepting advertising campaigns, knowing it in depth is essential to understand how to maximize the benefits when acting as both an advertiser and as a support to place the commercial promotion. These links may be of use to you.
