Return on Investment is a vital parameter in success of your business’ online marketing. After spending your hard earned marketing dollars to Google Ads or Facebook Ads, you have to optimize your campaigns, test it, change it and hope that all of your clicks eventually turn into sales.
When you factor in gross profit margins, shipping costs and other costs, it is difficult to keep up a strong enough ROI to measure your marketing efforts.
Let’s assume instead of focusing your digital advertising spend on "awareness metrics" such as impressions and clicks, you could spend your money only on real business results such as site visits, conversions and sales!
This is where CPA marketing comes in.
Unlike other marketing methods where you pay to promote your brand without guarantee of sales, CPA marketing allows you to only pay after the sale occurs at a rate that you specify.
For example, if you are selling a $ 100 toy and pay 10% commission to your CPA partners after the sale, you only pay $ 10 in marketing costs and get a 10: 1 ROAS (Return on ad spend).
This is a significant return.
What is CPA Marketing?
CPA marketing, also known as cost per action marketing, is a style of affiliate marketing model that provides a commission to the affiliate when a specific action is completed.
The lead action could anything from buying, getting a quote, watching a video, or filling out a form.
Benefits of CPA Marketing
CPA marketing is very profitable when you target the right audience.
1. Easy to set up
Launching a CPA marketing is easy: all you need is a website and a CPA network. By using your website and choosing a CPA offer, you can start getting traffic from affiliate sites almost immediately.
2. Pay just for converted traffic
You won't pay for traffic that doesn't convert.
If an affiliate’s referrals consistently offer low conversion rates, diversify your affiliates and shift your focus to a more successful influencer.
3. Low Risk
This risk is low for e-commerce businesses because the publisher will not be paid unless the referred visitor converts to complete a specific task.
4. High Return on Investment (ROI)
Affiliate marketing generates 16 percent of all online marketing.
CJ by Conversant’s Affiliate Customer Insights reveals that customers spend more money when making a purchase off an affiliate’s recommendation.
This means these types of marketing campaigns drive a better quality of traffic and offers a better value than most traffic sources.
Affiliate marketing produces:
58% higher average customer revenue.
31% higher per customer order average.
21% higher average order value (AOV).
Plus, the more sales you drive, the higher your commissions can be. For instance, the Big -Commerce affiliate program starts at a 200% bounty payment and goes higher based on sales volume.
5. Expand Marketıng Reach
CPA marketing gives you scale and distribution.
Whether your busıness is in fashion, electronics, home and garden, pet supplies, beauty or just about anything else, most brands use CPA marketing.
Executive Summary
CPA marketing is the next step in digital marketing that ROI-minded marketers are looking for.
If you want to expand your website reach, maintain a strong return on investment, and feel a real business impact, incorporate CPA marketing into your strategic plans.
Following the hottest CPA marketing trends in 2021 Winnovest Digital Marketing experts could increase your revenue and help create a strategic approach for next year’s digital marketing plan.
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