CPA VS CPC

Want to know the Difference between CPA vs CPC? Don’t worry you are about to get the information you need.

Whenever you purchase online ads, you will get the cost of advertising in CPM, CPA or CPC. These are the methods of calculating the cost of advertising which helps you to have a crystal clear understanding that where your ad dollars are going and they could also save you some extra bucks.

What does CPC means and How it works?

CPC stands for “cost per click”. It’s a pricing model advertisers pay some amount every time their ad is clicked.

It’s a dynamic pricing model means the amount of each click depends on several factors that are how competitive their desired keywords are or is it long-tail keywords or not.

A coveted keyword will have more value than a long-tail keyword.

Lower average CPC will give more clicks to advertisers.

Higher average CPC will give fewer clicks to advertisers.

CPC is best if you want to drive traffic, bookings or impression share.

CPC gives Higher and much more control to advertisers to spend their budget.

Advertiser and Publisher can negotiate on the rate and then proceed with them.

CPC has huge flexibility in controlling the overall traffic.

CPC demands a higher level of management as compared to other models.

What does CPA means and How it works?

CPA stands for “cost per acquisition”.

It does not only focus on just the click itself, in fact, it deals with what happens after a viewer clicks on the ad.

Signing-up for anything, watching a video or an action which happens after the click the advertisers are billed accordingly.

If advertisers want to start a CPA campaign then according to Google advertisers are required to have at least 15 conversions.

In CPA the publishers give guarantee for return metric to advertisers.

CPA allows advertisers to pay publishers based on performance.

Different researches show CPA does not enhance efficiency.

The CPA pricing model is best when the advertisers are not concerned with higher performance or increasing performance.

The CPA pricing model can be risky for bloggers and publishers because the conversions rate is based on the advertisers own websites.

CONCLUSION

CPC and CPA they both can be in the PPC world. Advertisers can take leverage from both of these campaigns at the same time but in most cases, it’s usually one or the other. Those advertisers who have more high-quality PPC-driven pipeline usually do better with CPA while the advertisers that don’t have high click-through rate usually do better with CPC.

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