It is obvious that the internet cannot live without internet advertising. Similar to television and print media entities, websites need the power of advertising to survive. This is why the sensible step to take as an entrepreneur if you want to promote or sell a product or service is to launch an advertising program using a specific model or several models.
The most popular advertising model to date is pay-per-click or PPC. The basic idea behind PPC is that advertisers are asked to pay every time someone clicks on an advertisement. The simple form of this model charges advertisers a fixed rate for every click. The more complicated version requires advertisers to bid on an advertising spot that is often based on a keyword. There are many online entities that support internet advertising in PPC form. Some of the most popular programs are run by major search engine companies.
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 disadvantages of PPC has made some advertisers turn to CPA advertising as another option. With CPA, ad owners don’t have to pay for every click. They pay for advertising when a specific action happens. They could for instance indicate that they want ad viewers to fill up forms, subscribe or buy a product. Only when these specific actions happen are they charged for advertising. Depending on your CPA provider, other action conditions may exist including pay-per-click.
The major benefit of CPA as an alternative to PPC is clear. As an advertiser, you are able to save more on advertising because you only pay for what you want to happen. This will allow you to spend your extra cash on other aspects of your advertising campaign.
You can choose to go exclusively into internet advertising in CPA form. Some however choose to use it only as a testing tool. They may want to enter a CPA agreement only to check if a planned campaign will work. It is obvious though that for advertisers who do not have a lot to begin with, CPA may be the only logical model to use.
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.