Understanding PPC and Pay per action

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Posted on 20th December 2012 by Jeff Rogers in Blogging |Technology

I was reading an article today that was discussing a new model for advertising called the Cost Per Action. If you are working with an advertising agency chances are they do not fully understand the overall impact of CPC and CPA. What this means is that advertisers would not pay on a Cost Per Click (CPC) basis as is the norm today, but rather pay services such as Google and Yahoo, only on clicks to their sites that actually result in a lead or sale. The one main glitch here is that those Advertisers will have to disclose some of the sales info to verify the sign up or sale. You need to get targeted traffic based on your offering in order to have a higher conversion rate. There are tested methods that can help you rank higher in the search engines that will enable you to get more targeted traffic. So just gaining more website traffic is not cost effective in the overall marketing campaign unless you are targeting the right keywords both in your search engine campaigns and on your website.

As a publisher of this blog we have used the Adsense model for a year now, and the CPC, while it does work, does have room for Click fraud, which appears to be growing. With CPA, you actually are paying for customers requesting more information or an actual sale. I found it interesting that in this article, they seemed to think this was a new way of doing business, which is not the case. You can look to an advertising Bizz Click which started on the internet and understand the tools and resources to help you grow your business and revenue.

You can also look to increase your traffic through CPC by offering giveaways in your ads. Consider offering a free service that is beneficial to the consumer. Offer free update services, a newsletter or an e-zine. If you’re worried that this may be too time consuming, put your fears aside. You can obtain free services that will notify you when someone has signed up for your newsletter and through the use of a distribution list on your e-mail you can easily handle circulation for your newsletter or e-zine. Keep in mind, however; when you are putting together your newsletter or e-zine that the only reason a consumer has for signing up and continuing to subscribe to your publication is for worthy information.

2 Comments
  1. Penny Action says:

    Hi, i read your blog occasionally and i own a similar one
    and i was just wondering if you get a lot of spam responses?
    If so how do you protect against it, any plugin or anything you can suggest?
    I get so much lately it’s driving me mad so any help is very much appreciated.

    20th December 2012 at 10:24 am

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    20th December 2012 at 2:41 am

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