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CPC VS CPA

October 26th, 2012 | by onlineincomejobs.com

Nowadays technology has been restructured and it is good to use online advertising to make money online. Google has been doing this since the day it was established and now it has emerged as a giant of advertisement in this world. Google has used smart advertising techniques to gain the number one status in the world and still looking for innovative and new advertising techniques to generate more revenue online and to maintain its leading status in the world. Not only google but many other online publishers have also been using online advertising techniques to earn money online and any of them have become self made millionaires by doing so. Many of the online publishers uses CPC advertising and a fair number of publishers use CPA advertising. Both advertising have their own benefits which are discussed in detail.

CPC is an abbreviation of Cost Per Click. As the name reflects it is the cost of a click. The idea is simple, whenever someone clicks any banner ad or any other ad then the advertiser has to pay some amount. Google Adsense has been using this technique of online advertising for a long period of time. A major back draw of this technique is that the publisher who publishes the ad or the webmasters are not able to earn good sum of money using CPC because they just can’t force the visitor of their website to click on the ad. The price which is agreed upon between the advertiser and the publisher is very less and is usually in a few cents per click. This shows that how cheap CPC is. General statistics say that at least 50% of your website visitors should click on the ad so that you can make a fair amount of profit.

Now the next question which arises in your mind is that what is CPA? So the answer to your question is that CPA stands for Cost Per Action. As the name suggests it is the cost which the advertiser has to pay when any action is taken on the advertisement. CPA is the second most popular technique of advertisement after Adsense. The publisher of the ad is able to get good amount of profit by using CPA technique. CPA is a lot different from CPC as in CPA income is dependant of the actions performed on the ad. In other words action can be sales made. For example there is a company which offers a 5% commission to the publisher if their product is sold successfully. So when the sales are closed than the publisher will get 5% on all the items which are sold using that ad.

A summary of the whole discussion is given below:

  • CPC generates revenue when the ad is clicked. On the other hand CPA generates revenue when the ad is clicked and some specified action is performed on it like any item is sold using that ad.
  • CPC advertising requires huge traffic to make it profitable but in CPA you don’t need to have huge traffic you need to have potential buyers of your product.