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Cost Per Action (cpa)


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3 replies to this topic

#1 Mumtaz

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Posted 10 December 2009 - 01:26 AM

Hi, Guys

I am new to this forum and i want to know about the CPA in Adword account. Right now i am doing PPC for my own site that's why i need your suggestion and ideas about the function of CPA. How it is helpful in PPC Ad Campaign.

I am waiting for your response.

Thanks! in Advance

#2 Randy

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Posted 10 December 2009 - 02:15 AM

Welcome Mumtaz ! hi.gif

I assume you're talking about the CPA or Cost Per Acquisition module, right? I'm not aware of any actual Cost Per Action system within Adwords anymore. The last of those, where you didn't actually pay until and unless a user reached a page you defined, ended in late summer 2008 as far as I know. And it was only in beta and was replaced by the Cost Per Acquisition module.

The main difference between the two being that with the old beta PPA (Pay Per Action) module the advertiser didn't actually pay anything to Google until a user clicked through the ad and then clicked farther onto a page that meant an action, or conversion had happened. Thus with PPA the risk laid squarely with Google and the folks who make up their content network. It was a lot more akin to a typical affiliate type of scheme.

With CPA you can set an amount, but basically it's not a guaranteed type of thing. It's a cost per Acquisition, which is similar to PPA since you still define a final page that means a conversion action has happened. But you pay up front. The difference being that the risk is on you to make sure whatever landing page people hit actually converts them into buyers. And Google attempts to make educated guesses based upon historical data to feed your landing page enough traffic so that the CPA adds up right.

It's not an exact science. The better you do at optimizing your landing pages to convert users, the better off you'll come out. Conversely, if your landing page and funnel just don't convert well you're probably going to spend more for traffic than Google estimates.

It's a subtle difference in the name, but an important one. The old way was definitely better for advertisers, but then they weren't really motivated to make sure their ads and pages converted well. The new way is better for Google and folks in their content network on the front end, and only better for advertisers if they know what they're doing and can pump up conversion rates to higher than normal levels.

#3 Mumtaz

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Posted 11 December 2009 - 08:19 AM

Dear webmaster, Thanks! a lot for such a nice information.

#4 Jill

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Posted 11 December 2009 - 08:57 AM

QUOTE(Mumtaz @ Dec 11 2009, 08:19 AM) View Post
Dear webmaster, Thanks! a lot for such a nice information.


Dear webmaster? Hmm...a bot perhaps?




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