Blog post -
Do you use the CPA model for e-marketing metrics?
One of the most widely used marketing tools that we as marketers use is email. We look at emails daily on multiple devices, be that a phone, tablet or desktop. We read emails at home, work and on the go. It is an amazingly powerful tool and is a must for marketing to the modern generation, where emails are checked on an hourly basis... at the very least.
What is CPA?
There are different types of email models that can be used, one of the most popular of late is a CPA
model. CPA stands for “Cost Per Action”, when put into practice this essentially means that you, the
client pays for the number of completed actions. In CPA email an acquisition/action can be anything
from filling out a form, getting an estimate or quote, signing up for a trial or purchasing something to
name a few.
This takes a lot of the risk away from you as you are only paying based on performance, so if the
campaign is not completing the actions required, you don’t pay.
CPA email encourages cooperation as everyone is working towards the same goal-making the
campaign as successful as possible and maximising revenue. This method is also favoured as it brings together the true email experts, working together to increase the sales for the client.
Lastly, CPA offers the largest volumes so your offer will receive greater brand exposure with all the
risk being with the data owners, not you!
CPA vs Other methods
There are many other methods that could be used instead of CPA, however, none give the security
or flexibility that CPA does.
In CPM the client pays for the amount of emails they wish to send per thousand e.g. 250,000 and
pay the cost upfront. There is no guarantee on results, if you were only to get one conversion you
would still be paying per thousand. The risk is completely on the advertiser.
It has occurred where unsuccessful campaigns have changed their payment model from a CPM basis to a CPA and have turned around to be extremely profitable with CPA.
Another method that is used is CPC which stands for “Cost Per Click”. Payment is given each time
someone clicks an email link. These can be very successful however, as it is on a click basis the
costs can soon accumulate and if the traffic is poor quality, this method may provide minimal leads
compared to the less risky CPA approach.
CPA email is a very effective marketing tool and if done correctly can be very profitable for all
involved. If you want to increase you brand awareness, reach a larger audience, drive traffic and
ultimately receive good quality leads that convert then come visit Digital Oyster at Stand 370. We
are CPA experts and have over 10 years of experience in the industry.
For more information visit our website: www.digitaloyster.co.uk.
We would love to help!