Any idea about CPC(Cost Per Click)? How it differs from CPA(Cost Per Action)?

Discussion in 'Search Engine Optimization' started by Krowon, Mar 8, 2011.

  1. #1
    Just wondering how it works? Also what is the difference between the two?

    Good day
    Krowon
     
    Krowon, Mar 8, 2011 IP
  2. carleisenstein

    carleisenstein Peon

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    #2
    If you're an advertiser:

    CPC = you pay for every person that clicks on your ad and visits your site
    CPA = you pay for every person that clicks on your ad and buys from you / signs up for your newsletter / whatever your goal is

    So CPAs are usually higher cost, but are more easy to manage from an advertiser ROI point of view, and for high quality publisher sites can often generate more revenue. CPCs are simpler to measure and simpler to implement and put the onus on the advertiser to optimise.
     
    carleisenstein, Mar 8, 2011 IP
  3. labraintellekt

    labraintellekt Peon

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    #3
    Cost per click is an advertising model where in the advertiser pays for each click or impressions or unique IP that enters the website. In comparison, Cost per Action is where the advertiser pays if somebody orders, purchase or joins the site. For more info, you may ask more. Hope this helps.
     
    labraintellekt, Mar 8, 2011 IP
  4. Krowon

    Krowon Peon

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    #4
    You guys are amazing! Thanks for the help! Now, both points are clear to me now..

    Cheers!
     
    Krowon, Mar 9, 2011 IP
  5. krishnaegurus

    krishnaegurus Peon

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    #5
    Post in the "Pay Per Click Advertising" to get even more relevant replies
     
    krishnaegurus, Mar 10, 2011 IP
  6. SalishaBrown

    SalishaBrown Peon

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    #6
    In the Cost Per Click advertising model, you will be charged for every click on your ad. You will not have to pay anything if users see your ad but do not click on it. Cost per click is determined by the following formula: Cost/Clicks
    It is a type of online advertising model in which return or payment is based on how many times the ad is clicked. Per-click prices can range from 0.10 cents to $10 depending on the popularity of the content or the advertising agreement.

    Cost Per Action or CPA (sometimes known as Pay Per Action or PPA) is an online advertising pricing model, where the advertiser pays for each specified action (a purchase, a form submission, and so on) linked to the advertisement.
    When referring to banner ads, CPA is the cost the advertiser pays to the site publisher each time a specific, visitor-initiated action occurs, eg, the completion of a sale.
     
    SalishaBrown, Mar 10, 2011 IP