How to grow your business revenue
Posted on April 28, 2008 at 1:34 pm by Sherri R
Cost per action (CPA) seems to be getting more play in the online advertising world. Here is how this would work from a publishers standpoint. (By the way a publisher is someone who runs the text ads you see that have content relative to their site. Just like the Ads you see along with this blog) As a Publisher running PPC ads or other forms of contextual ads on your site, you make a certain dollar amount on each click through on the ad, regardless if the person buys or completes any form. In the new model, you be be compensated if the click actually resulted in a purchase, or other action determined by the advertiser. So as you can see, you could get 1000 clicks a day on your ads running on your site, but unless there is an actual purchase, that would be $0 in your pocket. Interesting!! But the result in Cost per Action or CPA as it is called pay much higher than PPC ads
As an advertiser, if you elect to choose this model, it could be very cost effective as you would only be paying for actual sales, or leads. So for example you run a site that sells Domain names and hosting accounts. If someone see your ad on another site, clicks on it, but never purchases anything, you would not be charged anything. Unlike today, if you have purchased $1000 in clicks, they could all be used up without one sale. Plus for advertisers you greatly reduce PPC fraud as their are specific sales actions that have to take place.
This form of advertising has grown substantially since we first started partnering with companies that specialize in CPA. There are companies like http://www.clickbooth.com that specialize in this form of online marketing and have teamed up with some very large companies to bring bloggers and website owners a new form of revenue to their offerings.
From a publishers standpoint the Clickbooth Publisher Network offers a host of reports so that you can monitor which offers are performing best on your blogs or websites. They offer a great variety of ad types so that you will be sure to find one that will fit into your site. You can choose from banner ads, text links, and email templates that can be used across various marketing platforms. The more variety that you are given the more creative you can get and actually test different mediums to understand which types get better click through and better revenue. The process is easy to setup and free to join and qualify.
For advertisers you have various reports to help you understand how your ads are being viewed, which format is gaining more customers, and on the day and time of the actual clicks are happening.