When website owners search for a proven strategy to attract relevant visitors to their sites, they are often faced with the question; Should they use CPP or CPA advertising methods? In fact, the growth of CPA marketing companies shows that that kind of traffic and lead generation pays off in the long run, and there are several good deals on the market, some other experts say it’s overhyped and companies online should go back to CPP advertising. . First of all, the authors would like to define the two terms in online marketing, and then highlight the differences related to the debate: CPP versus CPA in advertising.
What is CPP advertising?
CPP basically stands for Cost Per Qualification Point. In this way, the advertiser buys an advertising space and the cost is determined as the cost of reaching one percent of the audience. Before setting up an online CPP advertising campaign, you need to research the medium and learn more about user statistics. It is essential to check if the people who visit the site are interested in the product, therefore market and media research skills are needed. Measurement of the performance of online ads is done by comparing the cost of reaching the audience with the profit generated by the campaign.
What is CPA advertising?
CPA advertising is short for Cost Per Action or Cost Per Acquisition. This is a simpler method of measuring results, as the user needs to take some action to generate money. Some lead generation campaigns measure the cost per lead and then convert it to CPA; how many leads are needed to generate a sale; how much money it is worth when a customer performs an action. This is a simple method and measures conversions rather than reach.
Is there a guarantee that CPA works?
There are many CPA companies on the Internet with different affiliates. There are newbies and advanced marketers among them, so choosing the right pay-per-action company and campaign is essential. Some of these affiliates would also use CPP as an advertising method to get conversions that pay to display the company’s ad. There isn’t much control over where these ads go, but at least the merchant doesn’t need to do the market research. Since they only pay the CPA company for conversions or leads, the associated risks are lower than in CPP advertising.
The benefits of CPP advertising
Many experts say that as long as the company chooses the right online medium where it wants to reach its target audience, the cost of sales in CPP advertising is much lower. However, if market research is neglected, it is a waste of time and money. Testing the two different methods and measuring the results is necessary to get an answer to the debate: CPP versus CPA in advertising.
