CPA marketing stands for “Cost Per Action” marketing. It is a type of affiliate marketing where affiliates (publishers or marketers) are rewarded for specific actions taken by users or customers they refer to the advertiser’s website or offer. Instead of receiving commissions based on sales, CPA marketers earn money based on specific actions or conversions that they drive.
In traditional affiliate marketing, affiliates are typically rewarded for driving sales (revenue share model) or getting leads (lead generation model). However, in CPA marketing, the actions that trigger the payout can vary and may include:
Clicks: The affiliate gets paid when a user clicks on the advertiser’s link or banner.
Form submissions: The affiliate earns a commission when a user completes a form on the advertiser’s website, providing their contact information or signing up for a newsletter.
App installs: In the case of mobile apps, the affiliate is paid when a user installs the advertiser’s app on their device.
Free trial sign-ups: The affiliate gets rewarded when a user signs up for a free trial of a product or service.
Surveys completed: Some CPA offers involve users completing surveys or questionnaires, and affiliates earn money for each completed survey.
Downloads: The affiliate is paid when a user downloads a specific file or software.
The main advantage of CPA marketing for advertisers is that it allows them to pay only for specific actions that directly contribute to their business goals, such as acquiring leads or users. It minimizes the risk of paying for traffic or advertising that doesn’t lead to tangible results. For affiliates, CPA marketing can be appealing because they don’t need to rely solely on sales conversions to earn money, and they can experiment with various offers to find what works best for their audience.
CPA marketing is commonly facilitated through affiliate networks that act as intermediaries between advertisers and affiliates. These networks provide a platform for affiliates to access a wide range of CPA offers from various advertisers, making it easier for affiliates to find suitable offers to promote and track their performance.