Which is better PPC (Pay per Click) or CPA (Cost per Action)? Pay per Click Pay Per Click (PPC) is an Internet advertising model used on websites, in which advertisers pay their host only when their ad is clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market. Content sites commonly charge a fixed price per click rather than use a bidding system. Cost per click (CPC) is the amount of money an advertiser pays search engines and other Internet publishers for a single click on its advertisement that brings one visitor to its website. Cost per Action Pay per Conversion 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. Direct response advertisers consider CPA the optimal way to buy online advertising, as an advertiser only pays for the ad when the desired action has occurred. An action can be a product being purchased, a form being filled, etc. The desired action to be performed is determined by the advertiser. Conversion Rate In internet marketing, conversion rate is the ratio of visitors who convert casual content views or website visits into desired actions based on subtle or direct requests from marketers, advertisers, and content creators. The Conversion rate is defined as follows: Conversion Rate = Total Number of Sale (Goal Achievements) / Total Numbers of Visits Successful conversions are interpreted differently by individual marketers, advertisers, and content creators. To online retailers, for example, a successful conversion may constitute the sale of a product to a consumer whose interest in the item was initially sparked by clicking a banner advertisement. To content creators, however, a successful conversion may refer to a membership registration, newsletter subscription, software download, or other activity that occurs due to a subtle or direct request from the content creator for the visitor to take the action. WIN LOSS ANALYSIS Win-loss analytics involves identifying and analyzing the reasons why a visitor to a website was or wasn't persuaded to engage in a desired action (conversion). This information allows web teams to improve the website's navigation and content, identify individuals that are more likely to convert, to improve marketing efforts. Win-loss analysis tracks the individual perspectives of each visitor, uncovering who the visitor was, what products they were qualified for, how well they were persuaded, and why they did or didn't convert. At last... Whatever the method you adopt for Web Marketing ends up in only one equation for profit calculations. Take a time, and calculate How much sales is made, how much expenses is made to generate sales, and finally how much you profit you bagged in your wallet. Total Sales Income - Totla Expenses (Product Cost, Efforts.Delivery, Commision/Advertisement) = Profit. So to make a $1 buck profit, the total expenses has to be less than $1. Smart businessman always keen about what comes-in and what goes out -WS
For a starter, you should use CPA. But if your site has high traffic, you may use CPM for the method. Btw, does adwords also give you options for CPA? As far as I know, it's only CPA and CPM.
Are you asking what's better between CPM and CPA? CPM is cost per 1000 impressions, basically banner advertising. CPC is when you only pay per click.
Wow... so many responses to this question so its definitely me... I have no clue what the OP wants to say... the thread started with a question & ended with a blanket statement "So to make a $1 buck profit, the total expenses has to be less than $1." Again for my understanding, Are you asking or are you telling?
I have been getting much better overall results with CPA. One problem is when a keyword is not performing well the automated system will reduce traffic for that keyword. So if you want traffic from those keywords you'll have to move them out of that campaign to a CPC one.
These are two separate actions. It really depends on what you are selling. Products, probably PPC. A service probably PCA
PPC involves creating and placing ads in prominent positions on search engine results pages. Potential customers see your ad when they type a word or phrase related to your business into a search engine like Google®. To create the most effective campaign, our consultants will select keywords that best define your business. Your ads will then appear on the most appropriate search result pages. We go beyond traditional PPC campaigns by providing you with lead tracking and reporting on phone calls, emails, form submissions and traffic to your Website generated by your ads. Cost per click (CPC) is the amount of money an advertiser pays search engines and other Internet publishers for a single click on its advertisement that brings one visitor to its website. The terms pay-per-click (PPC) and cost-per-click (CPC) are sometimes used interchangeably, sometimes as distinct terms. When used as distinct terms, PPC indicates payment based on click-throughs, while CPC indicates measurement of cost on a per-click basis for contracts not based on click-throughs. so i think PPC is better than CPC.