How can a bid-managed Pay-Per-Click advertising campaign improve website sales and lower your cost-per-acquisition? Learn from Neutralize (*\*) the UK’s most experienced search engine marketing agency in this introductory presentation.
Duration : 0:2:27
http://www.uberpulse.com/us/2007/08/cost_per_acquisition_holy_grail_for_online_advertising_google_says_video.php
At her Search Engine Strategies session, Marissa Mayer was particularly lucid on how approximative Google’s keyword auction is versus a CPA (Cost per Action) model, which she referred as the “holy” grail for targeted advertising. CPA is the amount an advertiser pays when a user completes a certain action (click on an ad then register, make a purchase…).
“Google’s auction is smart and we think it’s easy to use and ultimately it helps people understand the value that they are willing to pay for an ad. And ultimately get from that ad. But that’s an approximation. We know as advertisers, you have to take a function of your click through rate, the probability of conversion once users get to your site [...] And ultimately try to find out what your willing to spend for cost of sales. And back out to try to understand what you should bid in the auction”.
With Google’s auction, you don’t know for sure your cost of sale…
So ultimately it would be a lot cleaner if you, as business owners, know what you’re willing for your cost of sales to be and if you can give me a sale, that’s what I’m willing to pay for it. That way you can actually achieve a much better optimised outcome in the auction. Because right now, it’s just an approximation…
CPA, the Holy Grail?
So we’ve been looking at things like conversion tracking [...] to help people understand the likehood of conversion. But the holy grail is being able to use those numbers, ultimately offer a CPA based model. But I think that’s a long way off”
http://www.uberpulse.com/us/2007/08/cost_per_acquisition_holy_grail_for_online_advertising_google_says_video.php
Duration : 0:1:17
“CPA Marketing Tips and Tricks!”
http://www.ChristianFioravanti.com
Christian Fioravanti
christianfioravanti@yahoo.com
skype: shiftyfioravanti
Duration : 0:6:0
A CPA network is a company that allows advertisers and web publishers (internet marketers) to find each other and connect. In other words, it’s the “dating agency” that pairs you up with your best ad match.
And as with dating agencies, there are leftover prejudices about CPA networks being risky. The truth is, CPA networks have matured just as many of the bigger and more selective dating agencies (such as eHarmony) have done. Just as you see “real people” committed to values and caring relationships on eHarmony – compared to the sort of dating agency that uses scantily-clad girls speaking lines laced with sleazy innuendo. Most CPA networks are solid and reliable – it’s certain unscrupulous publishers (affiliates) who most often generate the “shady” label.
In fact, one of the most important functions a CPA network can perform lies in making sure both web publisher (you) and the advertiser are reputable, solid prospects.
Choose recognized and reputable CPA networks, and use intelligent marketing tactics, and your sites should never have a problem with credibility.
How Does It Work?
So far, it sounds remarkably like affiliate marketing, doesn’t it? But there are some vital differences it helps to learn straight away. Both rely on internet marketers to promote their products. The biggest different between the two lies in CPA emphasis on its affiliates generating leads, rather than sales. It’s usually less labour-intensive – you don’t have to do the sort of ongoing promotion affiliate marketing needs.
And in case you’re wondering what I mean by “generating leads”, that means having site visitors act by filling out a form with some sort of personal contact information.After that, your part is done – except for collecting your payment! It really is that easy.
Start simply at first, with email and zip code cost per action ads. As your skills grow, add in cost per acquisition to promote high-ticket items.
The phrase “CPA” sounds about as exciting and attention-grabbing as accounting terms would sound to a quilting enthusiast. It’s usually rattled off in this acronym form, and the assumption seems to be that you’ll know what it is.
Acronyms (short forms based on initials of words in titles) intimidate people, so many new internet marketers tend to ignore or gloss over this marketing method – but “CPA” simply means “Cost Per Action” or “Cost Per Acquisition”.
Cost Per Action means that your reader just has to take a specific action (E.G. input a valid email address, click on a link, request a free sample, etc.) Cost Per Acquisition means that your reader actually has to buy the product or subscription.
Websites (or reports like this) dryly talking about CPA can hardly compete with “Make a six figure income with no work – 1 week from now!” in excitement factor. But whether you’re choosing to focus on Cost Per Action or Cost Per Acquisition, CPA marketing has one common denominator: It is a form of advertising generated by a third party in which you are paid for hosting or promoting that party’s ad or link, based strictly on actions your readers take.
This in turn generates any of the following actions for the advertiser who is going to pay you:
New subscriber sign up
Purchase of a product
Sales lead for your advertiser’s further follow up
How much can you earn? Well, typically… not millions. New subscriber signups usually generate between $1.00 to $1.50 per lead. You definitely won’t get rich overnight.
But if you combine simple Cost Per Action with some well-chosen Cost Per Acquisitions, your payout may be much higher. For example, if you’re promoting a big-ticket item that costs $695, your commission that may be anywhere from $60-$300 on lead that results in a sale. A few of these combined with a bunch of easy “just click” links or banners can make a nice little second income for you. And once set up, it’s a painless way to add extra income generation from your already-existing sites. Put CPA to work for you while you go off to the church picnic or enjoy a well-deserved nap (after staying up all the night before, trying to solve your shopping cart problem.)
And as your list grows, so too will your profits.
