cost per acquisition
What does “cost per acquisition” (CPA) mean?
Cost Per Acquisition is an online advertising payment model whereby the advertiser pays the website publisher each time a measured transaction or goal occurs from the customer being sent via the publishers website to the advertisers.
The beauty of this model for the advertiser is that there are no costs for advertising placement or even clicks to a banner message unless there is also a result. Plus, having negotiated the rate willing to pay for the result, the advertiser is in control of their costs and ensures the ROI meets expectations and budget.
For the publisher, this model can create lasting long term advertising customers and profitability.
The relationship also ensures that the product or service advertised is in line with the publishers content, and therefore more relevant to the visitor, which leads to stronger click through rates.
As with any well thought through display banner campaign model, the impact of placing an advert on a publishers site is not limited to click throughs. Advertisers should seek spikes in both branded search query traffic and direct visitors following a display campaign. A publisher should ideally be rewarded for post impression traffic the advertiser gains for a determined period. Putting an advertisers product or service on a visitors radar whom visits the advertisers site post impression, but not via the banner click. To reward a publisher for sending a customer to an advertisers site beyond measuring only clicks becomes important for the transparency of the relationship.
Tracking such transactions or goals is imperative for this model to be mutually beneficial for both parties. Fortunately panoptic has the technical expertise to ensure tags and tracking software is correctly in place and tested before commencement.
Want to learn more about panoptic’s cost per acquisition capabilities? Then contact panoptic today.