CPA for peaceful purposes
The recent trend in Internet marketing can be considered the CPA format, when the calculation between the contractor and the contractor occurs only when a specific financial indicator is reached. About the structure of the CPA market, about the existing models of cooperation and their fundamental differences from each other in the story of Pavel Panov - the head of the CPA direction Kokoc.com (Kokoc Group).
What is CPA and who needs it?
CPA (Cost Per Action - from the English. Price per action) - a model of financial interaction in the field of online advertising, in which the advertiser pays not for impressions or clicks, but for specific user actions on the site. For example, buying a product, installing a mobile application, registering in a game or forum, filling out a questionnaire.
')
The peculiarity of the CPA is that the payment is made on the principle of “evening chairs, morning money”. That is, first the webmaster performs his part of the transaction: for example, he leads 100 people who must fill out a questionnaire on the advertiser's website, and only after that the customer pays for the result.
Who is interested in the CPA model? Primarily for companies selling goods or services of mass demand: online stores, tour operators, banks, microlending organizations, car dealers, online games, dating sites, video services. But the B2B and luxury segment CPA is unlikely to produce results.
Webmasters drive traffic to the advertiser's site in two ways:
- through its own traffic sources;
- through traffic arbitration.
Webmasters using the first method have one or more of their own resources, for example, a website, a group in social networks, for the audience of which they select advertisements. Moreover, they approach this process carefully, since the CPA assumes work not for a transition, but for the result: accordingly, you need to place an advertising offer (offer), to which visitors of the resource will accurately respond. For example, the site writing about fashion may be interested in the offers of clothing stores, shoes, accessories, cosmetics.
The second category of web-masters, who are called “arbitragers”, does not have its own platform, but even without it, they masterfully work with traffic, buying it for clicks / impressions in one place and selling for leads in another. For example, the webmaster negotiates with the advertiser, which will lead to the buyers website for 10% of each sale. Places advertising on the teaser or social network with a link to the client's resource. In this case, he buys the clicks that users have committed. And only if the people who have come to the advertiser's site perform a specific action (they buy, fill out a questionnaire), then the webmaster will receive his interest. As a rule, the benefit is higher than the cost of a click. For example, 1 click costs 10 rubles, and the percentage of the sale brings 1000 rubles (10% of 10,000 rubles).
CPA Job Opportunities
There are three models of work on CPA.
The first is when the advertiser directly contacts the webmaster. Most often, in this format, the client cooperates with a segmented business line and a webmaster with its own platform. For example, the owner of an online store for gamers who sells headphones, mice, keyboards, joysticks, it is interesting to buy ads on the CPA on a specialized site, where the target audience is gathered. Naturally, he will turn to the web-master, who owns the resource about popular games. The main plus of the model is that the advertiser immediately finds the target audience. However, it needs to conduct a separate integration with each site and pay a lot of bills every month. As a result, the advertiser has too many sites to control, to spend time on self-monitoring of the quality of work, or to hire a staff of subordinates.
This model is most interesting for small businesses (a young website with attendance of up to 30 thousand per month), for which it is important to increase the flow of traffic to the site and establish business processes.
The second model is based on cooperation between the advertiser and the partner network - the tender platform, which aggregates into both categories of webmasters. The advertiser places an offer on her site and finds performers. In partner networks, all categories of webmasters are gathered - not only resource owners, but also arbitragers, which advertisers are not easy to find on the Internet. Collaboration with a partner network saves customer's time searching for webmasters. However, most of these sites have strict requirements for advertisers. For example, they agree to work with a client whose website is visited daily from 100,000 people. Given that in Russia there are few such resources. And due to the lack of a customer-oriented approach, the quality of the work of partner networks often leaves much to be desired.
The model of cooperation with the affiliate network is a success with representatives of medium-sized businesses with a resource attendance of 30,000 per month, while the recommendations provided by the affiliate networks help them to establish business processes.
The third model of cooperation on CPA is to contact the advertiser in an advertising agency, acting as an aggregator of partner networks. It offers the client several options for placing an offer using the most suitable affiliate program. The relevance of the proposals depends on changes in the online advertising market. The most modern option is the “Green Offer” standard , the benefits of which, by the way, were appreciated by Kokoc Group customers. It helps advertisers increase sales by eliminating payment delays and significantly improving the quality of traffic coming from webmasters.
Green Offer frees advertisers from having to pay webmasters for each completed deal. Its deposit system provides an opportunity to test the service within a month. This time is enough to determine the average value of the daily amount of sales for the offer and subsequently lay the amount on their payment. If, for example, network traffic brought 300 sales, then you need to make an appropriate deposit for the next month. The money goes to pay for webmaster services: after each sale, funds are automatically deducted from the account. At the same time, the standard format of work does not change: monthly payments are saved, but webmasters receive additional motivation in the form of prompt payment of a fee, which naturally stimulates them to bring more potential buyers to the advertiser's site.
It is important that the Green Offer speeds up the process of checking the quality of traffic from 1 month to 2 weeks: the automation of the process allows webmasters to quickly assess the feasibility and volume of subsequent investments, and customers get more sales by increasing the turnover rate.
The agency assumes full control over the work of partner networks and webmasters, saving the client time. And unlike affiliate programs, it offers an individual approach to each advertiser. Of course, working with an agency is more expensive than the two previous models of cooperation, since it implies a commission. This option is suitable for a business with a large amount of work with partner networks, for controlling which requires significant additional resources.
What is CPA and who needs it?
CPA (Cost Per Action - from the English. Price per action) - a model of financial interaction in the field of online advertising, in which the advertiser pays not for impressions or clicks, but for specific user actions on the site. For example, buying a product, installing a mobile application, registering in a game or forum, filling out a questionnaire.
')
The peculiarity of the CPA is that the payment is made on the principle of “evening chairs, morning money”. That is, first the webmaster performs his part of the transaction: for example, he leads 100 people who must fill out a questionnaire on the advertiser's website, and only after that the customer pays for the result.
Who is interested in the CPA model? Primarily for companies selling goods or services of mass demand: online stores, tour operators, banks, microlending organizations, car dealers, online games, dating sites, video services. But the B2B and luxury segment CPA is unlikely to produce results.
Webmasters drive traffic to the advertiser's site in two ways:
- through its own traffic sources;
- through traffic arbitration.
Webmasters using the first method have one or more of their own resources, for example, a website, a group in social networks, for the audience of which they select advertisements. Moreover, they approach this process carefully, since the CPA assumes work not for a transition, but for the result: accordingly, you need to place an advertising offer (offer), to which visitors of the resource will accurately respond. For example, the site writing about fashion may be interested in the offers of clothing stores, shoes, accessories, cosmetics.
The second category of web-masters, who are called “arbitragers”, does not have its own platform, but even without it, they masterfully work with traffic, buying it for clicks / impressions in one place and selling for leads in another. For example, the webmaster negotiates with the advertiser, which will lead to the buyers website for 10% of each sale. Places advertising on the teaser or social network with a link to the client's resource. In this case, he buys the clicks that users have committed. And only if the people who have come to the advertiser's site perform a specific action (they buy, fill out a questionnaire), then the webmaster will receive his interest. As a rule, the benefit is higher than the cost of a click. For example, 1 click costs 10 rubles, and the percentage of the sale brings 1000 rubles (10% of 10,000 rubles).
CPA Job Opportunities
There are three models of work on CPA.
The first is when the advertiser directly contacts the webmaster. Most often, in this format, the client cooperates with a segmented business line and a webmaster with its own platform. For example, the owner of an online store for gamers who sells headphones, mice, keyboards, joysticks, it is interesting to buy ads on the CPA on a specialized site, where the target audience is gathered. Naturally, he will turn to the web-master, who owns the resource about popular games. The main plus of the model is that the advertiser immediately finds the target audience. However, it needs to conduct a separate integration with each site and pay a lot of bills every month. As a result, the advertiser has too many sites to control, to spend time on self-monitoring of the quality of work, or to hire a staff of subordinates.
This model is most interesting for small businesses (a young website with attendance of up to 30 thousand per month), for which it is important to increase the flow of traffic to the site and establish business processes.
The second model is based on cooperation between the advertiser and the partner network - the tender platform, which aggregates into both categories of webmasters. The advertiser places an offer on her site and finds performers. In partner networks, all categories of webmasters are gathered - not only resource owners, but also arbitragers, which advertisers are not easy to find on the Internet. Collaboration with a partner network saves customer's time searching for webmasters. However, most of these sites have strict requirements for advertisers. For example, they agree to work with a client whose website is visited daily from 100,000 people. Given that in Russia there are few such resources. And due to the lack of a customer-oriented approach, the quality of the work of partner networks often leaves much to be desired.
The model of cooperation with the affiliate network is a success with representatives of medium-sized businesses with a resource attendance of 30,000 per month, while the recommendations provided by the affiliate networks help them to establish business processes.
The third model of cooperation on CPA is to contact the advertiser in an advertising agency, acting as an aggregator of partner networks. It offers the client several options for placing an offer using the most suitable affiliate program. The relevance of the proposals depends on changes in the online advertising market. The most modern option is the “Green Offer” standard , the benefits of which, by the way, were appreciated by Kokoc Group customers. It helps advertisers increase sales by eliminating payment delays and significantly improving the quality of traffic coming from webmasters.
Green Offer frees advertisers from having to pay webmasters for each completed deal. Its deposit system provides an opportunity to test the service within a month. This time is enough to determine the average value of the daily amount of sales for the offer and subsequently lay the amount on their payment. If, for example, network traffic brought 300 sales, then you need to make an appropriate deposit for the next month. The money goes to pay for webmaster services: after each sale, funds are automatically deducted from the account. At the same time, the standard format of work does not change: monthly payments are saved, but webmasters receive additional motivation in the form of prompt payment of a fee, which naturally stimulates them to bring more potential buyers to the advertiser's site.
It is important that the Green Offer speeds up the process of checking the quality of traffic from 1 month to 2 weeks: the automation of the process allows webmasters to quickly assess the feasibility and volume of subsequent investments, and customers get more sales by increasing the turnover rate.
The agency assumes full control over the work of partner networks and webmasters, saving the client time. And unlike affiliate programs, it offers an individual approach to each advertiser. Of course, working with an agency is more expensive than the two previous models of cooperation, since it implies a commission. This option is suitable for a business with a large amount of work with partner networks, for controlling which requires significant additional resources.
Source: https://habr.com/ru/post/291450/
All Articles