Tag Archives: CPA

Impress, Click or Aquire Me… go on! I know you want to.

29 Jul

Right! I hope the distinction between the two is fairly obvious, but those who have no idea what CPA, CPC and CPM are please click here, here and here. So in reading this weeks NMA I stumbled across an article which put these heavy-weights of the online world into competition. I’m thinking to myself, surely they are just tools to achieve totally different jobs. Hence the very reason they exist in the first place.

Acquisition has long been the bastion of any direct marketers dream, and in times of the ‘credit crunch’ – how I loath the media for whipping us up into that frenzy, but that’s another story for another time; acquisition is a measurable, definitive return on investment, it does in effect what it says on the tin. At no cost to the advertiser despite the number of displays, the only persons whom potentially loses here are the media owners.

CPC is the bigger brother of internet marketing terms compared to CPA, it is much more established, and widely used, especially by the oh so adored search engines. This models has it own flaws, but impressively it does force the media owner and the advertiser to think about what they are doing. A strong and well targeted message will drive clicks and hopefully the right people to the right landing page. The media owner just has the risk of weighing the money they get from clicks as opposed to a CPM deal.

If CPA and CPC are brothers, then surely CPM is the daddy of Online and in many respects where advertising started in the first place, by wonderful graphics that would entice the mind, conjuring images that make for empathy and understanding of the brand values….wait we might have something here, is display advertising about branding, surely not…

I’ve had time to calm down, and realise that it largely is. Branding is the cornerstone to why CPM is important and will remain. If you really want to be clever about it, you may want to start tracking clicks on display advertising like you would for click advertising, I bet the clever ones can see how this might help measure ROI, but remember you’re still trying to connect the brand to the conciousness of a fickle audience.

So what has this taught us, well CPM will remain in some form or another, just like it has in the traditional media space, and CPA/CPC will be that tatical marketing that looks to shift services and/or products by a strong call to action and a great offer, the other conerstone of marketing beyond branding.