Basically, certain ‘brick and mortar’ industries and large companies, are now primarily using CPA media as their main method to advertise their product or service, simply because CPA offers a far better ‘bang for their buck’ than if they did PPC advertising.
Its estimated that now up to 45% of all organizations and corporations who use the services of CPA networks, represents the largest corporations in their respective industries, representing the largest widely known, well respected brand name products and services.
Although this may not seem that relevant to you as a website publisher, as it really doesn’t matter who is paying you as long as you get paid, the significance and importance of ‘brand recognition’ should not be underestimated.
If you are a blog or website publisher and you are looking for different ways to monetize your site, then you have to understand the basic psychology of your site visitors. When they visit and view your website for the first time, the ‘brand name’ CPA advertisers that they immediately see, instantly gives them an impression of the quality of your site and an overall opinion of your business and reputation.
Displaying advertisements from well known recognizable respected companies who choose to advertise via CPA, will come across as an endorsement of your site by them. This happens even if you didn’t even choose the advertiser who appears on your site. It does not lessen the positive impact of the subliminal message and association that is immediately created and portrayed in the mind of any site visitor who sees that advertisement on your site.
So imagine your website that you are planning to place advertising on is based on travel, so obviously you would want to feature advertising from: hotels, car rental companies, cruise and airlines etc. When you attract visitors to the site, what would give that visitor the best ‘first impression’ of your site? An ad from Joe Shmoe Car Rental Company or an ad from Budget Rent A Car?
The answer is obvious, and this isn’t something that you should not ignore. Using CPA advertising from large well known companies can immediately enhance the perceived quality of your website.
Not only that, the visitors to your site are almost always certainly going to be a lot more willing and receptive to conduct business with these large well known corporate ads on your site rather than they are with companies of whom they have never even heard of before.
So Who Are The Big Names?
This is due to these leading service based companies already aware from their research that customers generally are not going to ‘buy’ anything on a whim or first impression, simply because the services that they offer are structured that way and thus people do not purchase right away.
These organizations using CPA media are generally far more interested in collecting initial focused, targeted leads from their advertising instead, and are willing to pay for it. This can be better understood by looking at a list of the types of industries that use CPA advertising to promote their service.
These may include:
The most apparent common denominator amongst all of these service orientated businesses is that they do not really expect anyone to commit to buying their offer immediately, unless of course the type of service is targeted and marketed directly at the point of need.
As an example… No one is likely to commit to getting a mortgage instantly on a whim. They are also not likely going to investigate getting a car loan if they have no need of such a product or service. They just wouldn’t waste their time.
These market segments are however incredibly competitive. These large organizations using CPA know and appreciate the fact that if they can get someone to join their email list or find some other method of encouraging people to complete their online form, they would instantly have a significant head start on their competition.
A reason why these large organizations no longer use PPC advertising any longer is its incredibly expensive for them. For example, bank and credit-card companies find themselves paying anywhere from $5 to $11 per click when using AdWords, so running a Pay Per Click campaign can become extremely expensive very quickly, even for these big boys.
Using CPA however, these organizations know they will only pay for leads that are focused, refined and targeted for their business. They are simply passing the buck to the publisher to do the legwork they once did. Using CPA represents a far greater value for every dollar spent than PPC advertising ever did or will. Thats why for example, credit card companies are will to pay up to $10 for someone simply filling out an online form.