Internet Advertising in CPA and PPC Models – Which is Better?

Clearly, the internet cannot survive without internet advertising in various models. Just like other information providers such as television and print media, most websites and services are kept alive because of advertising. If you own a product or service that you would want to sell, the logical step is to pick an advertising model to implement your advertising campaign.

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.

The success of search engine advertising programs is proof that PPC is a system that works well for both advertisers and publishers. Clearly though, there are some downsides to it. The most obvious disadvantage is the amount of cash that advertisers have to part with even if clicks do not convert to product sales. You have to pay for every click. Also, bidding platforms can be extremely competitive. Small advertisers who do not have a lot to spend on advertising will almost always lose to the big players.

The negative aspects of PPC are what make cost-per-action or CPA advertising a good alternative. In this model, advertisers pay only when a specific action is realized. They may for example specify that they will pay for advertising if someone actually buys a product, if ad impressions reach a certain figure or if an ad clicker decides to subscribe. There are other specific payment conditions that exist. Available conditions will depend on the CPA provider that you sign up with.

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.

Internet advertising in CPA format can be used as a stand-alone tool. Others however prefer to use this model only under specific circumstances. Some for example go for this model when they need to test advertisement performance or an ad campaign or program first. For advertisers with limited funds however, there may be no better option than CPA.
Of course, there may be some disadvantages to CPA. These however may depend a lot on individual CPA providers. Huge PPC providers have devised systems that already work like clockwork. You may have to spend some time looking for a CPA provider that has an outstanding system that will give you exactly what you want in a timely and glitch-free manner.

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.

 

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