How the CPA market works

The essence of CPA advertising. How is everything arranged?

Cost Per Action is an advertising payment model where you pay only for targeted actions. For example, it can be the purchase of certain products or the execution of an application with personal data, registration, software installation, and so on.

Now the CPA model is one of the most effective methods of paying for advertising. That is, here we are not talking about conditional impressions or clicks, since there is simply no real benefit here. Only users who are interested in the offer are paid.

Here, among the key KPIs, there are:

  1. Conversion.
  2. Sales.

Namely, because of this, they launch the CPA channel. Of course, traffic, cost per lead or the minimum cost of a user deserves attention here.

The essence of the work of CPA networks

This is a modern and already standard tool in CPA marketing. This is a collaboration model where companies attract new customers to promote their own goods or products. But there are intermediaries, which immediately forms 3 participants:

  1. Advertiser. It can be a company that promotes its services or products.
  2. Partner. This is a webmaster who has the resources to promote other people’s services.
  3. Intermediary, that is, the network. Here on the site all applications from the customer are placed, and the contractor can leave a request for a specific order.
What is the meaning of CPA networks

The advertiser contacts the CPA to place an offer. The offer itself is a proposal for cooperation, which contains all the necessary information about it.

That is, the affiliate places an offer and waits for the corresponding contractor to respond. But the intermediary always has a commission for their services. There may be an amount of about 30-40%.

The contractor selects an order and begins work to attract the target audience, using all permitted methods for this. For example, he uses his own website or page on social networks, contextual advertising or targeting, mailing lists, and so on. But the network checks the actions of the performer and evaluates the quality of the traffic. Ultimately, the latter receives a payment. And each of the participants in the transaction has its own benefit.

Of course, some may ask why the company does not set up advertising on its own? After all, you just need to choose a channel and create an ad, set up and start everything. But in reality, everything is different. The company must be aware of what specific target audience and where it occurs most often. You need to creatively present the ad in order to interest the audience. That is, you need to allocate money and hire a specialist. So it’s easier to solve everything through an intermediary.