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Guide What is CPA/PPD


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Pay-Per-Download is an online advertising pricing model where the advertiser pays the PPD network for advertising their offer, then the PPD publishers from the network, upload their files and when people download them, the publisher will make money, along with the PPD network administrators, while the advertiser will get the offer completion in return.
PPD acts like a middleman to CPA as they usually gets their offers from there, and the PPD administrators do also cut a bit of the money every time a file is downloaded.
Unlike CPA which has a gateaway for completion, PPD networks tend to use a download page only. However, it's more and more available to the PPD network users to use different lockers as a custom feature.

Cost per action is a digital advertising payment model that allows to charge an advertiser only for a specified action taken by a prospective customer. All actions covered by the model are directly related to some type of conversion, ranging from a newsletter sign up to a link click or sale, and determined by the advertiser.

Cost Per Action vs. Cost Per Acquisition

Although the terms are often used interchangeably, cost per acquisition is a financial metric that measures the costs of acquiring one paying customer.

Cost Per Action(CPA) vs. Cost Per Click (CPC)

Cost per click (CPC) measures the cost or cost-equivalent for each click on your ads, while cost per action (CPA) allows you to determine the action (views, leads or sales) you want to measure. CPC is designed to drive traffic to a website whereas CPA includes various conversion related actions.

How to Calculate CPA
Formulas used to calculate cost per action can get quite complex, but the most basic approach is: CPA = Total marketing spend (month/year) divided of Total number of customers acquired
The more touchpoints before a conversion are required, the more expensive is the acquisition. To calculate your CPA for every marketing channel, use figures appropriate to that particular channel (for example, if you spend $100 on Facebook ads and acquire 10 new customers, your CPA would be $10 per new acquisition for Facebook channel only).
Cost per action becomes really handy once you figure out how much a certain customer’s action is worth to your business. This helps to set the right advertising budget and continue to optimize to lower cost per action costs until you know that your marketing campaigns are paying off.
I'm very familiar with Cost Per Action because it's what I use for making money with having my website monetized using ads networks. As for Pay-Per-Download, I haven't got any experience with it.