If you are familiar with the key differences between CPI (cost per impressions) and CPA (cost per action) then, you should take some measurements to convert from CPI and CPA. CPI and CPA are two of the fundamental metrics or pricing models that are responsible for evaluating the price to pay for an online marketing campaign. In today’s digital world, if you have an online business then, you should focus on improving the results of your online marketing campaigning efforts. This article discusses why and how you can switch from CPI to CPA to experiment with ways to success on the internet.
Difference between CPI and CPA:
This section discusses the difference between cost per installations/impressions and cost per action/acquisition. Before an advertiser considers switching from one pricing module to another pricing model, it should evaluate and compare the key differences between CPI and CPA to determine which method would work the best for its online business.
What is and Why use CPI?
If a campaign is created in correspondence to cost per installation then, the advertiser will be responsible to pay when a user installs an app to its smartphone. However, the number of new apps on any app store (PlayStore or Apple Store) has skyrocketed considerably over the years, and several mobile app developers are continuously developing new apps and launching them to the app store. It has urged the developers to look for users who would download and install the apps to their smartphones, and the advertisers promise the developers an amount that they would be paid when they install the software or the app to their phone.
With CPI, an advertiser would be excluded from paying for impressions or leads. CPI works as a targeted ad, and it requires the advertisers to pay when a user installs the app and not take any action. With the number of apps on the internet, if a user installs one of the apps after accessing a targeted ad, the creator of the campaign would be required to pay after you have installed the app.
CPI is an effective advertisement tool as the creator of the campaign would only be required to pay when the users installs the app being promoted. While CPI might have its share of benefits and advantages, it is considerably an expensive type of advertising campaign, as your ad would be promoted to million to users but, you wouldn’t benefit until a user is adamant on accessing the app through the ad and install it to its smartphone.
What is & How does CPA works?
CPA, known as cost per acquisition or cost per action makes a counterpart of CPI, and it is becoming one of the most effective pricing models in mobile advertisement. CPA refers to the total cost that is invested when a user takes an action on the app. It is one of the most effective tools for advertisers, and it is known to be more efficient than CPM, CPC, and CPL. An advertiser would be only required to pay for the successful acquisition, and it helps it to track the user acquisition of a user for securing better outcomes.
CPA is becoming one of the most sought out pricing models, and it is inclusive of elements such as; email marketing, SEM, SEO, Google AdWord, Banners in blog content, and CRO that allows an advertiser to profit from the advertising efforts. While, CPA is costly and it requires better research in comparison to CPI—it is regarded as an efficient way of ensuring the success of apps, and it provides excellent ROI to the campaign runner, advertisers, and the mobile apps developer as well.
Why shift from CPI to CPA?
The mobile advertising industry has changed and shifted significantly over the years, and it is subjected to change with every new trend introduced in this specific area. It has resulted in creating a giant leap in the ad technology, which has enabled the pioneers of the mobile advertising industry to leverage their efforts when investing in mobile advertising strategies and projects. A majority of the leading advertisers in the mobile advertising industry have become vastly familiar with the significance of user acquisition when running campaigns, and they are continuously evaluating and measuring their efforts to yield better outcomes.
Now, we barely come across any pioneering advertiser who indulges in non-controlled campaigns to further its online marketing campaigns, and they have adapted controlled variables into its campaigns for securing better outcomes. With the advancements made to the industry, the leading advertisers have started imposing specific metrics and advertising strategies to meet a number of demands, and it has enabled them to make a shift from CPI to CPA.
There is a need to address the differences and benefits to recognize the benefits offered by both pricing models, and businesses should weigh in the factors that would attribute towards finding feasible outcomes eventually. Given the history of mobile user acquisition, the advertisers have started opting to the options to allow them to utilize their budget for delivering profitable and tangible outcomes.
In this context, CPA advertisement makes a perfect option for them due to the fact that it charges the advertiser when a user has completed a specific action using the app. The CPA pricing model enables the advertisers to pay for the action taken by a consumer as a component of the quantifiable consumer engagement. On other hand, if a user simply downloads an app or many apps to its smartphone and not use any one the apps then, it wouldn’t bring any benefit to the advertiser or mobile app developer in the long run. There would be a lack of incoherence between two factors, which would be eliminated by integrating CPA to the advertising module.
Switching from CPI to CPA is one way to ensure success, and it would allow the advertisers to expand the reach of their campaigning efforts to earn a better ROI in the long run. Let’s have a look at the top benefits of CPA:
- Advertisers are required to pay for the actions that would bring them profit. They interact with real active or paying users to evaluate the remainders of the criteria.
- Advertisers are excluded from the responsibility to pay thousands of the users that might not even bring profit to them.
- The advertisers wouldn’t have to deal with fraudulent users on the internet.
- The advertisers would be free from the responsibility of monitoring and analyzing their campaigns on a regular basis.
- They would be free from the restriction of dealing with inadequate CPI rates and restrictions that keep them from earning a profitable margin.
- They would no longer be required to keep up with the account manager at the ad-network.
- They wouldn’t have to restrain the budget. If they pay for CPA then, the users are likely to bring them ROI, which should allow the advertisers to gain access to unlimited users.
A majority of the advertisers on the internet have started making amends in their online marketing campaigns, and they have reported successful and profitable outcomes. Also, the KPIs have become more restrictive and specific, and it requires the businesses to adapt a pricing model that would help them acquire positive outcomes, which would be switching from CPI to CPA.
If you are looking to switch from CPI to CPA, you can reach out to Creative Clicks. Creative Clicks creates and commercializes innovative new media products with an International focus and a strong consumer-driven business model. Partnering with the largest international (online) media companies and top brands, Creative Clicks is able to market its products to mass audiences around the globe.