Measuring Campaign Success with CPA or CPC

The success of advertising channels such as Google Ads and Facebook proves that digital marketing is still a thing in today’s digital marketing landscape. Before you decide to embark on digital marketing, you should consider your return on investment. After all, you need to start turning your hard-earned marketing dollars into sales.

To understand how to make the most out of your advertising campaign, you need to understand terms like CPA and CPC, usually used in pay-per-click advertising. Continue reading to understand the difference between these two strategies and learn which suits you best.

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What is CPA in a Marketing Campaign?

CPA marketing stands for cost per action. It’s a marketing style that relies on an affiliate marketing model that offers commission to affiliates when a person completes a particular action. Leads can be completing an action such as watching a video, filling out a form, or getting a quote. 

CPA will then promote the campaign through the affiliates, who are paid a particular fee when a referred visitor completes the intended action. Here’s a breakdown of what’s and who’s involved in the CPA model:

Affiliate or Publisher:

This includes the influencer, such as business, brands, or blogs that promote the business or product to drive traffic to an ecommerce site or make specific conversions. 

Advertiser or Business:

This includes the brand that desires a partnership with an affiliate to help them drive quality traffic into their ecommerce website, increase sales, boost conversion, or generate leads. 

 

CPA network:

This refers to the platform that brings affiliates who want to make money through product or business promotions.

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Benefits of CPA Marketing

CPA marketing is a profitable strategy with the following benefits:

 

Easy to set up

It’s easy to set up and launch CPA marketing. All you need is to have a website, a CPA network, and a little bit of capital. If you have your website, you can choose CPA and begin getting traffic from affiliate sites immediately. 

Allows Payment After Sale 

In CPA marketing campaigns, you don’t pay for traffic without conversion. You can also diversify your affiliate or focus on a successful influencer if an affiliate referral continuously brings low-rate conversion.

Low Risk 

Since there’s no payment until referred visitors convert to a customer or complete certain tasks, CPA is a low-risk ecommerce strategy. Therefore, you don’t have to worry about losing your money through this strategy. 

High ROI 

About 16% of the online market comes from affiliate marketing. Most CPA marketing campaigns drive visitors with a higher chance of converting to customers than other traffic sources. You will earn a higher commission if you’re an influencer based on its high sales drive. 

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What is CPC in a Marketing Campaign?

CPC marketing refers to the cost per click, it is also referred to as pay per click. With this marketing strategy, the advertiser usually pays the cost to a publisher for all clicks on an advert. 

A good example of a CPC is Google Ads. This strategy is a significant factor when building a bidding strategy, converting bidding types, and maximizing clicks based on your budget and target keywords. 

Various social media, text, and rich media rely on CPC to calculate the total amount to pay for an advertising campaign. It’s used as a factor in adverts such as:

To calculate your cost-per-click, you need to divide the cost of the paid advertising campaign by the number of clicks. Big online advertising tools such as Google Ads rely on keywords to display paid advertisements. Therefore, these tools show CPC for the target keywords. Therefore:

Cost per click = Advertising Cost/ Number of Clicks

Other metrics associated with CPC include the maximum cost per click and cost per click. Paid advertising platforms such as Google AdWords rely on specific strategies such as manual cost per click and cost per click that marketers can use based on their goals

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The Advantages of Using Cost Per Click

The benefits of using cost per click for your digital marketing campaign include:

With other digital marketing campaigns, advertisers pay a fee for the adverts shown without guaranteeing results. However, cost per click grants payments according to performance visits.

The cost-per-click campaign strategy provides advertisers with complete information about their advertisements, including conversions, clicks, and the number of impressions.

With the data collected through cost-per-click marketing campaigns, it’s easy to determine whether an advert is working and its correct course. The best strategy is to create variations and see which works best for you.

You don’t waste clicks with the CPC’s segmentation options, its metrics allow users to target ads to high convertible users. Therefore, you will yield better results since there are chances of getting clients with high chances of clicking the advert.

CPC allows its users to set their maximum budget per day. Users can even start with $1, depending on your target audience. This means that you can adopt a budget based on your financial capabilities and the size of the audience you’re targeting.

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Which Marketing Campaign is Most Effective between CPA and CPC?

There’s no direct answer about which marketing campaign is effective between CPA and CPC. Some advertisers even use both types of campaigns simultaneously, although it’s usually one. Your choice narrows down to your goals and capabilities. 

For instance, advertisers with quality pay-per-click are better with CPA – they may be paying more for every click and even get relatively few clicks. They also have a better chance of closing their deals and generating revenue. 

However, you are better off with CPC if you’re an advertiser without an excellent click-through rate and conversion rate. You may need to spend more time optimizing your PPC to get a better quality score. You can even get clicks hours after launching your adverts and set daily budgets. Therefore, your advertisements will automatically be pulled out once you hit the amount. 

Market your Business with Webserv

The success of your digital marketing campaign depends on how well you understand and use CPA or CPC. It’s much easier to achieve your expectations if you rely on a per-per-click service. 

At Webserv, we do our PPC differently to meet the best results for our clients. We optimize campaign performance to achieve maximum ROI with our unique approach backed by a track record of success. Start a free audit today, and let’s help you get value out of your online marketing campaign.

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