To take a CPA offer, or not to take: that is the question. Evertrack decided to give you a few tips to help you pick the perfect mobile CPA offer.
The pursuit of business improvement led to the internet marketing, especially to affiliate programs. In these programs, advertisers get access to the target audience with the help of affiliate networks. The platforms allow to create a request (an offer) for the publishers to handle some of the marketing goals (e.g. sending traffic to the ads). Affiliate marketing allows advertisers to reduce the risk of fraud and receive the desired result from an ad.
Affiliate marketing is popular nowadays and continues to gain popularity. First thing you need to do is to understand the whole structure of mobile CPA offers. Even smart people need a help! That is why we are here, to share best practices and guidelines with you. So, let’s start from the beginning and go through the basics of mobile CPA advertising in affiliate marketing.
More about affiliate marketing
There are almost 5 billion unique mobile users in the world, and about 3 billion of them are active smartphone users. Just think about this impressive number.
Sure, the distribution of mobile devices affects marketing. Using a mobile ad network as a marketing platform opens up new opportunities for brands to reach potential customers in any part of the planet. And you know what? Affiliate marketing knows how to do this.
So what is affiliate marketing?
Affiliate marketing is a type of performance-based marketing where advertisers or marketers pay to publishers and affiliates in order to get traffic for their ad (to make sales or get leads). In other words, affiliate marketing is a popular tactic to drive sales and generate considerable revenue. The main players of affiliate marketing are advertisers, publishers, affiliates, customers, and networks.
How does affiliate marketing work?
There are several ways of online advertising campaigns. As a publisher, you can get a payment every time when advertiser’s advertisement is viewed and clicked or leads to a purchase.
Mobile CPA advertising, basically
Another option brings a click on the advertisement offer, signing up for a free trial, registration, and purchase of the product. This type is multifunctional, because signup and registration generate leads, and sales bring earnings, which means that your traffic works and you will get paid for every action set by advertiser. We call it “cost per action” (CPA).
CPA advertising is less risky for advertisers because they pay only for a qualified action that was set by themselves. It can be a sale, getting a lead, etc. Besides, CPA allows protecting advertisers from mobile fraud.
To avoid misunderstanding between you and the advertiser, he indicates campaign requirements you need to stick to, and this is called a CPA offer. It is something like getting a phone number, zip code, email, in-app registration, or app install, advertiser determines the action themselves. CPA offers directed to engage users.
Let’s see an example: a business owner needs some conversions (for example app install) to understand his market and expand the business. Next, the owner (e.g. advertiser) creates an advertisement, then pays a CPA network that has affiliates who will provide the traffic. The owner creates an offer where he points what action he wants (in our case, he wants the install).
Next, the affiliate gets the case and starts sending the traffic. After the campaign affiliate gets paid for every install. The system is simple: advertisers want to sell their products, and publishers or affiliates, in return, provide the platforms where advertisers can promote their products.
How the interaction between advertiser and affiliates looks like
- The advertiser places an offer on affiliate tracking platform (an offer means a sale or other marketing goals).
- Affiliate selects the offer and gets a unique link to the product page.
- Then, the publisher sets up the advertisement and sends the traffic.
- Users navigate through the ads with an affiliate link.
- Publisher or affiliate earns a fixed amount for each conversion.
What should be mentioned in the CPA offer
To make the offer clear there should be defined:
Name and description of the product or the app have to be clear.
The audience. Everyone is not the answer, so the advertiser has to do a research and find out who may be interested in the product or service. Also, the advertiser has to point a type of traffic and traffic restrictions.
Decide on actions. Relying on the marketing campaign, actions from users have to be defined (e.g. tap the banner, install the app, register, etc.)
Banners and links to attract the customers should be included in the description for the affiliate.
Specify a good payout for the action. Advertiser has to play fair with publishers and affiliates, to raise user engagement and maximize the revenue. The price has to be indicated.
Criteria for selecting mobile offers:
- Uniqueness works good in marketing. You can sell almost anything if it’s unique.
No one has yet complained about the wow effect. It’s easier to work with a cost-per-action offer that promotes a unique product/service.
It is obviously different from the analogues that are offered to a wide range of consumers. We recommend you select offers that have advantages you don’t have to talk about.
- Popularity. The popular offer has its pros and cons.
Pros: everyone knows this offer, it's usually stable, has a sufficient budget and the same KPI.
Cons: As a popular offer is distributed by many networks and agencies, it becomes harder for affiliates to overbid competitors’ CPAs and find quality sources (unless you try to play around sending cheap, low-quality traffic). CPA rates are no longer an effective way to compete, and you have to focus on non-price methods like loyalty and IOs in order to keep running the offer with your publishers.
- Targeting can be applied by the operating system (iOS, Android) platforms, devices, geo (country, city, region), etc.
The narrower the audience is, the harder it is to find good traffic. Mobile marketers target their potential customers based on user behavior data. So, they can mention it.
Targeting right users means capturing a person’s interests at the exact moment when the person is already engaged in a particular mobile app. When the targeting is correct, your ad will help to engage your customer.
- CPA bids depend on many factors.
There are minimal and maximal rates. If it’s too cheap or expensive, affiliates hesitate in decision making. They are usually guided by average prices, which seems to be an adequate practice. The advertiser you liked will not always set an adequate price for its product.
Therefore, if you want to compete in the same advertising system, the price of your advertiser should not differ by 5-10% from competitors. If the price differs by more than 10%, then try to look for alternative sources of targeted traffic.
- Type of traffic. Generally speaking, these are the three types of mobile traffic: organic, incent (rewarded), and non-incent.
With non-incent traffic, the installs take place according to the classic advertising model: users see an advertisement that is interesting to them and follow the link.
With the incent traffic, users are rewarded for installing the app. At the same time, the application itself isn’t interesting to the customers. Rewarded app install campaigns let buy volumes of cheap installs to get higher rankings and visibility on the app stores. Consequently, the app is likely to acquire more organic users and views.
And the organic traffic allows installing applications from Google Play/App Store through the search or from the stores’ recommendations. You can provide the traffic by several payment models: cost-per-click (CPC), cost-per-installation (CPI), cost-per-mile (CPM).
What makes a CPA offer perfect
Let’s talk about the benefits of CPA. The coolest thing about cost-per-action is that you receive a payment for the results or when a customer actually converts and no more. It's much more interesting than working for impressions or clicks which can or cannot produce a value for your business.
And, of course, it’s a perfect way to help the advertiser to find users who are really interested in the product/service. Remember, good co-working brings the long-term business relationship.
One of the key tasks of traffic monetization in CPA is the selection of the most interesting and profitable CPA programs (offers). Almost every CPA-network has a rating which is formed due to the preference of affiliates. On the top of the list are the offers that can be suitable.
CPA perfect works for the advertiser and affiliates who prefer to work without a fraud. Evertrack allows working in acceptable conditions for advertisers and affiliates. CPA campaign is, first of all, a success and a good start for the business in affiliate marketing.