Keep Your Eyes Wide Open for the Low-Risk Trend of CPA Marketing & Grow Your Brand in No Time

  • Date Published
  • Categories Blog
  • Reading Time 4-Minute Read

This article takes you through the definition of this marketing trend to help you decide whether it’s the right tool to integrate with your campaigns.

Maybe the CPA terms sound familiar to you if you have some experience in Google Ads. Although it refers to a similar result, this marketing model differs as it involves more actions and happens through another medium.

Let’s dig in!

What Is CPA Marketing?

Firstly, the term stands for Cost Per Action Marketing.

It’s a branch of affiliate marketing that helps online businesses in more ways than traditional affiliate marketing since the end user can take any action of their choice, depending on your business goals.

According to MarketingTerms, this term refers to an:

Online advertising payment model in which payment is based solely on qualifying actions such as sales or registrations. 

Therefore, it has plenty of uses you can benefit from in your product campaign.

This referral marketing tool works best if you sell products or provide services. You only need a website, a YouTube channel, or a profile for users to discover. It helps you reach a wider audience and suits all brands, regardless of size.

You need to partner with a blogger, influencer, or content creator, encourage them to engage their public to take a specific action, and, in the end, pay them for the action that users took.

CPA marketing is gaining popularity among bloggers and influencers, as they get paid easier for simple actions that users take. It works as passive income, as their part of the work is done once they publish the agreed content. Your partners receive a commission fee for users’ actions while you get results.

How Does CPA Marketing Work?

This marketing model works best for lead generation and conversion campaigns.

  • Lead Generation: Website traffic through banner display, social media video posting, filling up a form, or taking a survey.
  • Conversion: Buying your product, testing a new product, asking for a quote.
  • Brand Advocacy: Review writing.

The main categories of this model are:

  • Pay per Sale: You cash out the commission after a purchase.
  • Pay per Action: Cost per lead.
  • Recurring Payments: Continuous campaigns for lead generation.

The tactic involves two or three players in the game.

  • Your Brand: Your focus point is to research appropriate affiliates for your brand and decide on a business goal to pursue.
  • The Influencer: Promotes your product in a personalized manner to achieve your desired goal.
  • CPA Platform (if available): Helps you connect with the affiliate quickly and in no time while it provides additional data about the audience and its actions.

Once you establish how the influencer promotes your website or products, you both can measure results through a tracking link. Then, the business advertiser and the referring influencer certify the action, and the affiliate receives the commission.

Why Does It Differ from Affiliate Marketing?

It might be confusing for some fresh marketers to work with CPA. The term is also popular in the industry as Cost Per Acquisition, which refers to a transaction. However, buying actions are related to old-school affiliate marketing rather than the trending action-based formula.

What is the CPA Marketing Formula?

Before going into numbers, you need to consider the campaign timeframe.

You can easily work on the formula:

Total advertising spends / the total number of conversions = Average CPA

Does this look familiar? Yep, this is the Google Ads formula for cost-per-acquisition marketing.

Key Takeaways: Now You Are No Longer a Beginner

Welcome to the universe of marketers who consider the CPA business models for quick-results campaigns! Let’s think a bit more about the why of such an idea.

Cost-per-action marketing helps you increase brand awareness, spark interest among consumers who haven’t purchased, and increase your brand reputation. An article on a high-ranking specialized blog is a valuable backlink you earn indirectly from the brand–content creator collaboration.

Such an initiative may open new doors to collaborations with celebrities who may have otherwise exceeded the boundaries of your budget.