Posts Tagged ‘PPA’

Pay Per Click Versus Pay Per Action

On every internet marketing forums, people discuss about google adwords or pay per click (ppc) and there are also many new comers who  do not know exactly what is. In order to describe it of fast and simple way, I will say that Adwords is a service, part of the google advertising sytem that offers to the people and companies that wish to sell or promote their products or services through google and other associate sites.

When anyone using google search, they will have some amount of advertisements to the right of their computer screen. They are companies or people who pay to be in there, and this is obtained through adwords program. If a visitor clicks on some of these advertisement, google will get  a percentage paid by each click.

In the last months this service has improved and the advertisers not only pay per click, but the action where a visitor takes any action advertisers websites. Pay Per Action or PPA are still new program that instead pay by the visits, the advertiser can choose to pay when the visitor realizes some of the pre-established actions, like subscribing to a list, to realize a purchase, or to request information through contact form.

Whereas both options, PPC and PPA, are valid and efficient, but there is a small difference between both exists: whereas  PPC are apt to appear as much in the searches as in the associated sites to google, the PPA, at the moment, only can be present in the publishing sites of the google content network. On the other hand, these publishers can select those PPA that turn out more excellent or advisable their sites to them and to publish them into the sites or news blog that they prepare with that aim.

Nevertheless, the PPA have the great advantage of which only the advertiser decides how much he will pay by his ads by action: they can decide how much they are arranged to pay by each action in particular made specific in its websites and can control its costs. They set up they own daily budget for PPA.

Labels: Pay Per Click, Pay Per Action, PPA, PPC

Cost Per Action Business Model

CPA is stand fro Cost Per Action. The advertiser will pay a specific amount by the action that a visitor take when they arrives through a publicity online. That action can be a purchase, a subscription, etc. The actions that will be pleased are decided by who announces, in as much the amount to pay can be decided by the advertiser, an adjustment between the parts, auction among others announcements, etc.

Each action has a price, that can be by example a percentage of the sale that the advertiser thanks to a published announcement obtained. The advertiser pays by each action that a visitor take indeed, achieving therefore a success ensured by the inverted money.

Sometimes term PPA (payment by action) is dealed with like synonymous CPA, although PPA makes more reference to the system of compensation and CPA to a specific cost after an action. For example, the CPA that must pay an advertiser to a publisher because referring subscribed is $4, therefore the CPA is $4. In as much the compensation system that is using in this example it is the PPA or payment by the actions that the referred one.

I believe that system CPA of by itself is not the best option, except for very specific cases where the conversions are very profitable and the commissions are very good, perhaps a mixed system CPA + CPC is interesting. To determine a profitable any CPA Advertising Campaign is to get highly targeted traffic that convert = money in the bank.

Labels: Cost Per Action, Advertising Campaign, CPA, PPA

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