Digital Marketing: Defining a CPA Network
In digital marketing, CPA stands for cost per action. A CPA network is an advertising model in which actions that are taken as a direct result of marketing results in a payment for the publisher.
Contrary to affiliate marketing, publishers within a CPA network do not necessarily need to generate actions leading to sales; payments are instead based on lead generation, such as getting people to submit contact details in exchange for more information or free products.
More information about how affiliate marketing works can be found in the embedded PDF.
Adsterra operates a CPA network offering publishers payouts on a fortnightly basis, with a wide range of direct offers and selective quality offers available (both local and global). All of the customer services and tools provided by the popular ad network come complete with Adsterra malware protection.
Goals of CPA Networks
The primary goal of a CPA network is to generate leads for companies by linking to their products in ways that are relevant to the reader. Publishers on CPA networks may link to or advertise a variety of products and services within each piece of content published, provided each link adds value to the reader.
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An example could be a food blogger who links to kitchen appliances, recipe books or health food stores while publishing recipes on-site for people following a specific type of diet, such as low-carb. As part of a CPA network, the blogger earns a commission for each lead generated or sale completed as a direct result of their content.
The infographic attachment looks at who is involved in a typical CPA network.
CPA Network Payment Models
Payments for publishers on a CPA network can vary depending on the competition and on the average rates of commission within a specific vertical. On the Adsterra CPA network, publishers receive upwards of 10% CR and eCPM over $100.
Other networks may pay 5% within highly competitive verticals, or a higher rate within tiered commission structures. A definition of commission can be seen in the short video attachment to this post.
For advertisers, one of the primary benefits of CPA marketing is that commission is only paid once a desired result — such as lead generation — has occurred, rather than paying up-front for placing an advertisement. Other benefits include low risk, the potential for a high ROI, and the ease with which a CPA network can be joined or set up.
