Clearly, the internet cannot survive without internet advertising in various models. Just like other information providers such as television and print media, most websites and services are kept alive because of advertising. If you are an entreprenuer and you own a product or service that you would want to sell, the logical step is to pick an advertising model to implement your advertising campaign.
Without a doubt, PPC or pay-per-click is among the most used model. The fundamental notion of PPC is that advertisers shell out payments for advertising spots every single time a browser or visitor clicks on an advertisement. A basic campaign format requires fixed rate payments per click. A higher version of the model however pits advertisers against each other and they bid for the right to occupy a spot based on some specific keyword. A number of search engines are the most popular providers of this model.
Obviously, major PPC providers have met with a lot of success. Many advertisers and publishers have found this form of advertising well suited to their needs. There can be however be some disadvantages to this model. One clear negative point is the amount of money that advertisers have to prepare for a PPC campaign because every click counts. This can even be more costly if few ad viewers become customers. Moreover, bidding is a competitive activity. If you can’t offer a lot, you have no way to win on a popular keyword.
The negative aspects of PPC are what make cost-per-action or CPA advertising a good alternative. In this model, advertisers pay only when a specific action is realized. They may for example specify that they will pay for advertising if someone actually buys a product, if ad impressions reach a certain figure or if an ad clicker decides to subscribe. There are other specific payment conditions that exist. Available conditions will depend on the CPA provider that you sign up with.
It doesn’t take a genius to see how good CPA can be. Advertisers get so much more value for their money because a clear benefit is offered for every dollar spent on advertising. Moreover, savings on advertising cost can be used for other phases of a campaign.
CPA is a model that can work ell by itself. Some however may only choose this model if specific situations exist. You may for example choose CPA if you want to test the waters for a costly campaign. Advertisers however who do not have a lot of cash to begin with may have no other choice than to launch a CPA campaign.
Like any other model, there may be problems with CPA. One obvious issue may be with the quality of CPA providers. The quality and reliability of the systems that major PPC advertisers have is something that is hard to match. If you want a CPA provider that is as good as or better than huge PPC providers, you may have to go into an intensive hunt.
The question of which advertising model is better is hard to answer. The decision to enter internet advertising in CPA or PPC would typically depend on several factors including circumstances that are unique for every advertiser. The better model can perhaps be determined based on individual conditions. Despite the lack of a clear answer though, it is certain that CPA is a viable alternative to PPC.