In the world of on-line advertising, the CPA model or Cost per Action model is gaining prominence.
In fact Google is said to be experimenting with this model in addition to the CPM (Cost-Per-Thousand) and CPC (Cost-Per-Click) models.
Cost per Action can be utilised effectively in a myraid of ways to the advertisers advantage.
The avertisers retain the choice of which action will be paid.
It could be for a sale, for a lead, for impressions or even for a click.
Advertisers can use it to build brand awareness and reach new customers with minimal expense.
The choice and amount of payment for each action is set and not derived from competitive or market driven forces.
Of course competition within similar industries, may eventually drive prices, but at this point, it is not as ubiquitous
as bidding on keywords as is observed in the CPC model.
It can also be used to generate leads for an opt-in mailing lists.
CPA models can also be used to accelerate responses and ultimately sales from present advertising programs.
It may aslo help to minimize Click fraud which Google says it loses $1 billion a year to false ad clicks.
Click fraud is seen as the weak point in CPC model
There are also several advantages for publishers
the cost of generating leads is lower, which in-turn can increase the EPC or Earnings Per Click.
The option of choosing,which action to publish, can now be decided based upon your needs, objective,budget
or cirumstances.
In fact , it also possible for the publisher to reap significant revenue with minimal cost ,as long as the
desired action is taken.
The emphasis is still on the advertiser to develop effective content, while the publisher assumes the task of delivering
the actions.
The CPA model, however, puts the consumer at the center. Everything is created not only to get consumers where they want to go, but also to take action -- as marketers only pay and publishers only get paid if consumers truly convert, not just click.
The the top of the heap or CPA is Clickbooth and AzoogleAds.
There have aslo been recent variations to the CPA model with the recent introduction of Pay-per-Play. Pay-per-Play. offers the publishers payment for impressions in the form of auto play of a 5-sec audio ad.
As with all new technology, CPA is still in infancy and is currently evolving.
The new does not automatically replace the old. In this age of results, CPA is not the sole player. CPM and CPC are still viable and effective models for many types of marketers and publishers.
There are going to be detractors and dissenters
The use of the CPA model should be examined against advantages and disadvantages in each particular situation.
Author Resource:-
Dale in Ontario and has been on-line for several years.
Currently focusing on the consumer oriented site eConsumersearch.com.
credits include Wired magazine,Cnet and also
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