Online marketing business models: CPM, CPC, CPA

[mandy]

CPA (cost per action): This takes CPC a step further and is the true 'performance-based' metric employed in the U.S. It is also the highest-growth metric in the U.S., with advertising dollars for CPA surpassing CPM in 2007 for the first time ever. This metric ensures the highest amount of performance and is the closest to pure direct marketing we have so far. The advertiser is paying the publisher or ad network only when a desired action (like a sale, lead, purchase, etc.) occurs stemming from a particular advertisement, usually at a currency amount desired by the advertiser. The types of marketing campaigns that typically utilise CPA campaigns have historically been true direct response marketers. However, we have started to see a shift with more brand marketers embracing this type of model. Further, with economic recessionary times, CPA is desirable as a way of maximising marketing spend against tightening ad budgets...

full article: http://imediaconnection.com/content/19423.asp