Pay Per Acquisition Advertising (CPA)

 

All about Pay Per Acquisition Advertising (CPA)!

What does ‘Pay per Acquisition advertising’ mean?

Pay per acquisition, also known as ‘Cost per Action (CPA)’, is one of the strategies of online advertising in which the advertiser has to pay only when an advertisement invites an acquisition or action from the prospective customers. Perhaps, the action could be submission of a form, registering as a user, signing up for a newsletter, most importantly making sales.

Pay per acquisition advertising is extremely effective as the advertiser needs to pay only when the advertising sees its purpose that could be sign-up, buy, etc. depending upon the ad.

As a matter of fact, the ‘Pay per Acquisition’ is generally higher than ‘Cost per Click (CPA)’.‘Pay per Acquisition’ is definitely more optimal than otherof online advertising strategies since the advertiser is charged only if a specific action takes place, and not otherwise. Not only this, it is indeed a source of return on investments for many website owners.
 

Features of Pay per Acquisition:

The Pay per Acquisition strategy is optimal and efficient. Also, the advertiser has to make payment involving transmission of credit card information. However, these campaigns are quite complex as they involve submission of credit card details and other transactional information. Perhaps, these do invite lower volume.

Often, the advertisers who opt for ‘Pay per Acquisition’ have to relinquish their control over the advertisements, which is handled by publishers of the ads. Pay per Acquisition is quite versatile.

The formula for Calculation of Cost per acquisition is as follows:
 

Cost per acquisition = Total cost / total number of acquisitions.

 

Pay per acquisition bidding:

Pay per Acquisition is also known as Conversion Optimizer. Also, CPA bidding is an automated bidding process that can count acquisitions and let one pay as per one’s choice. There are two ways for bidding CPA, in the name of Maximum CPA bidding, and Target CPA bidding.

The former lets the advertisers to fix a maximum amount they can pay for the acquisition. Perhaps, on an average, the cost paid will be less that the bidding cost set initially. However, the latter involves setting of an average cost that one can pay. Also, Google AdWords can assist you in calculating an appropriate CPA bid for your campaign to a really great extent.

However, it is strongly recommended that one should not rely completely on CPA bidding, but concentrate on reviewing ads, and analyzing keywords.

CPA bidding:why go for it?

It is undoubtedly an efficient and automated bidding system that can help you in counting only relevant and profit making clicks. The calculations are however made when a user searches using keywords that are relevant to your business offerings. Certain factors like ad’s acquisitions past background, the searcher’s geographical location, and the close words to keywords do play an important role and assure that best results are returned as soon as possible. This has definitely made CPA bidding perform better than ever before.

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