Monetize with CPA Ads Networks

Monetize with Ads Networks

Cost Per Action or CPA (sometimes known as Pay Per Action or PPA) is an online advertising pricing model, where the advertiser pays for each specified action (a purchase, a form submission, and so on) linked to the advertisement.

Direct response advertisers consider CPA the optimal way to buy online advertising, as an advertiser only pays for the ad when the desired action has occurred. An action can be a product being purchased, a form being filled, etc. (The desired action to be performed is determined by the advertiser.) Google has incorporated this model into their Google AdSense [1] offering while eBay has recently announced a similar pricing called AdContext.

The CPA can be determined by different factors, depending where the online advertising inventory is being purchased.

CPA is sometimes referred to as "Cost Per Acquisition", which has to do with the fact that most CPA offers by advertisers are about acquiring something (mostly new customers, prospects or leads). Using the term "Cost Per Acquisition" instead of "Cost Per Action" is not incorrect. It is actually more specific. "Cost Per Acquisition" is included in "Cost Per Action", but not all "Cost Per Action" offers can be referred to as "Cost Per Acquisition".

[edit] Effective cost per action

A related term, eCPA or effective Cost Per Action, is used to measure the effectiveness of advertising inventory purchased (by the advertiser) via a CPC, CPM, or CPT basis.

eCPA is used to measure the effectiveness of advertising inventory purchased (by the advertiser) via a CPC, CPM, or CPT basis. In other words, the eCPA tells the advertiser what they would have paid if they purchased the advertising inventory on a CPA basis (instead of a CPC, CPM, or CPT basis).

With big-brand dollars fueling the marketplace and inventory on top Web sites being gobbled up, you'd think CPA (define) ad opportunities would be declining. Why then are more CPA ad networks cropping up, with the top producer reaping $10-20 million per month in revenues?

Like affiliate networks, CPA ad networks rely on publishers who are willing to promote their advertisers' offers, and both networks call these publishers "affiliates."

CPA networks act more like direct CPA-deal brokers, whereas affiliate networks more passively facilitate the pay-per-performance process. CPA networks closely guard and nurture their affiliates, especially the top-producing ones, and are more likely to walk a great offer to top affiliates to ensure it gets picked up.

Affiliate networks may require startup fees and advertiser prequalifications, whereas CPA networks have very few barriers to entry. And whereas affiliate networks may not pay their affiliates frequently or until a certain revenue level has been achieved, CPA networks pay affiliates more readily in an effort to woo and retain them.

CPA (cost per action, cost per acquisition) networks usually offering a large collection of affiliate relationships. InternetAdSales.com generally recommends joining a network of affiliate programs rather than seeking out and implementing individual offers site-by-site, due to the significant economies of scale that can be gained, particularly in terms of banner rotation and payment processing.

In a Nutshell
In a CPA model, the publisher gets paid when a visitor they have referred to the advertiser completes an action such as signing up or buying a product. For this reason, the revenue the publisher earns is dependant on the advertiser and is commonly set as a percentage of the sale for products sold such as 10% or 15%.