Clearly, the internet cannot survive without internet advertising in various models. Just like other information providers such as television and print media, most websites and services are kept alive because of advertising. If you are an entreprenuer and you own a product or service that you would want to sell, the logical step is to pick an advertising model to implement your advertising campaign.
Without a doubt, PPC or pay-per-click is among the most used model. The fundamental notion of PPC is that advertisers shell out payments for advertising spots every single time a browser or visitor clicks on an advertisement. A basic campaign format requires fixed rate payments per click. A higher version of the model however pits advertisers against each other and they bid for the right to occupy a spot based on some specific keyword. A number of search engines are the most popular providers of this model.
It is obvious that search engines have been succeeding with the PPC model. It is also clear though that there are some issues to using this model. One main objection leveled against PPC models is the amount of money needed to support a serious campaign. The cost of a campaign becomes even more of a concern when you consider that advertisers have to pay for every click even if many of them do not convert to profits. The bidding model is also very aggressive. There is no chance that small advertisers can win against big competitors.
Because of the issues surrounding PPC, CPA advertising has emerged as a possible alternative model. In a CPA campaign, an advertiser is only obligated to pay when an action he specifies is met. Examples of this are when an advertisement viewer subscribes, fills up a form, buys a product or pays for a service. An advertiser can set many more different conditions and the availability of these conditions will depend on the CPA provider.
It doesn’t take a genius to see how good CPA can be. Advertisers get so much more value for their money because a clear benefit is offered for every dollar spent on advertising. Moreover, savings on advertising cost can be used for other phases of a campaign.
You can choose to go exclusively into internet advertising in CPA form. Some however choose to use it only as a testing tool. They may want to enter a CPA agreement only to check if a planned campaign will work. It is obvious though that for advertisers who do not have a lot to begin with, CPA may be the only logical model to use.
Of course, there may be some disadvantages to CPA. These however may depend a lot on individual CPA providers. Huge PPC providers have devised systems that already work like clockwork. You may have to spend some time looking for a CPA provider that has an outstanding system that will give you exactly what you want in a timely and glitch-free manner.
There is no clear answer to the question of which model is best. The best way to find out what will work for you is to determine your specific condition and preferences are as an advertiser.