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What is CPA Advertising?

For those interested in monetizing their web site or that have a product or service that they would like to advertise and promote, CPA ad networks are considered to be one the most advantageous forms of advertising available online.

CPA Defined
CPA stands for Cost per Action. Generally speaking publishers that own trafficked web sites are paid by the advertiser when a visitor performs a specific action. These actions can vary, but usually include either viewing a site, filling out a form to join a newsletter or to receive information which is sometimes referred to generating leads or list building and/or buying a product. It should be noted that the advertiser will usually state which type of action he will pay for and may include payment for only one type of action or will vary payments for several types of actions that are completed.

CPA can also stand for Cost per Acquisition. Cost per acquisition is a more detailed term used to state that a specific, required action is requested in order for the advertiser to pay a commission or fee to the publisher. For instance, most CPA ad networks that sign up affiliates (web site publishers) for cost per acquisition marketing require the affiliate to return a certain response. An affiliate might be paid for each visitor that signs up for a newsletter or an affiliate might be paid a certain commission for selling a product. Cost per action can include cost per acquisition; however the reverse is not always true.

The CPA Ad Network
CPA ad networks sign up publishes to promote and market an advertisers. web site, products and services. The publishers that are signed up by the CPA ad network are called affiliates. CPA ad networks are sometimes referred to as affiliate networks. While this is not entirely wrong, they do have some differences. CPA ad networks can be seen as CPA brokers, they work very closely with their advertising clients to find the top publishers to market and advertise their products. They differ from affiliate networks in a number of ways. First, CPA ad networks are very client focused whereas most affiliate networks are much more passive when it comes to advertiser CPA performance. In addition, many affiliate networks usually require their affiliates to pay a start up fee, as well as be prequalified in a number of areas. As a publisher, CPA ad networks are usually much less strict on who can join and are normally free to join. In addition, besides being extremely focused on an advertiser.s performance, CPA ad networks generally work hard on retaining their affiliates, usually by paying them very well and on a regular payment schedule.

Lead Generation
Lead generation is one of the most popular products that CPA ad networks offer. Generating leads is one of the mainstays of a CPA ad network. Most CPA ad networks work with thousands of publishers in almost every niche to generate lead generation. Lead generation is usually in the form of having a web site visitor sign up for a newsletter, more information about a product or service or to win a prize. Many advertisers build profitable marketing lists with information that is gathered from generating leads. Usually an advertiser will pay a specific fee for each compete lead a publisher receives. The role of the CPA ad network is to broker the advertisers lead generation campaign to the right publishers. Most CPA ad networks spotlight advertisers campaigns to their affiliates, in addition specific affiliates may get preferential treatment especially if they produce a lot of revenue or are in a specific niche. It should also be noted that many CPA ad networks take their campaigns to other ad networks to see if other affiliates are interested in promoting a specific campaign. In the industry this is known as competition and many CPA ad networks work together in this endeavor.

Commission for Acquisition
While lead generation is the main stay of CPA ad networks, other products that are available are cost per acquisition which is the sale of a product or service. Publishers promote and advertise a product on their web site and if this product is sold, the advertiser pays a commission that is already pre determined. While this is one of the most advantageous ways to market a product for an advertiser, there is a lot of risk on the part of the publisher, most notably the expense of promoting the product and the advertising space given to the product on the publisher.s web site. CPA ad networks work very closely with the advertiser and usually make sure the product is up to par for its affiliates.

CPA Ad Networks Attract Big Name Advertisers
While there are plenty of smaller businesses selling products and services, one thing that publishers should consider when thinking about joining a CPA ad network are all the big name advertisers that use a CPA ad network. If you are concerned about the product and services that you will be promoting on your web site, you should know that up to 40% of advertisers on CPA ad networks are large corporations with well known products and services.

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