Is PPC to CPA Dead?
Hi,
After reading a WSO (or two) about the endless possibilities of sending PPC (Pay Per Click) visitors to a CPA (Cost Per Action) offer, I thought I'd revisit the concept. Effectively what I did was create a blog, with around 10 pages focusing on May DVD releases. That blog and a typical post can be found here:
The King's Speech DVD Rental | DVD For Rental
I chose to target UK visitors and offer them the 30 day free trial at LoveFilm. I would get $26 per sign up.
These are the results of a 2 week campaign:
As you can see, I sent 320 visitors to the blog at a cost of $77.27. Sadly, only 30 of those clicked through to the target LoveFilm. Then only 1 of those converted, for a net loss of $51.27.
My thoughts are as follows:
1. Now Google basically disapproves of direct linking to a CPA offer, there will always be some leakage between your blog/site and the target offer. In my case, this leakage was nearly 90%. I also suspect that not all the clicks came from the UK, although that's what I paid for.
2. I could have reduced that leakage by offering the visitors some sort of offer to get them to sign up to my list and then sell to them down the track.
3. Based on the target conversion of around 3%, the cost of each visitor to LoveFilm, needs to be less than $0.87, the further beneath that figure, the greater your profit.
So, there it is. Based on a CPC of $0.24, if I could get around 1 in 3 to go to the target site, this could be a (just) profitable campaign. The other alternative is to reduce the CPC to $0.08, which could be possible on the content network and in the long tail.
It might also be worth a shot on PPV and I might do that next.
Warriors, any thoughts?
All the very best, Allen
After reading a WSO (or two) about the endless possibilities of sending PPC (Pay Per Click) visitors to a CPA (Cost Per Action) offer, I thought I'd revisit the concept. Effectively what I did was create a blog, with around 10 pages focusing on May DVD releases. That blog and a typical post can be found here:
The King's Speech DVD Rental | DVD For Rental
I chose to target UK visitors and offer them the 30 day free trial at LoveFilm. I would get $26 per sign up.
These are the results of a 2 week campaign:
As you can see, I sent 320 visitors to the blog at a cost of $77.27. Sadly, only 30 of those clicked through to the target LoveFilm. Then only 1 of those converted, for a net loss of $51.27.
My thoughts are as follows:
1. Now Google basically disapproves of direct linking to a CPA offer, there will always be some leakage between your blog/site and the target offer. In my case, this leakage was nearly 90%. I also suspect that not all the clicks came from the UK, although that's what I paid for.
2. I could have reduced that leakage by offering the visitors some sort of offer to get them to sign up to my list and then sell to them down the track.
3. Based on the target conversion of around 3%, the cost of each visitor to LoveFilm, needs to be less than $0.87, the further beneath that figure, the greater your profit.
So, there it is. Based on a CPC of $0.24, if I could get around 1 in 3 to go to the target site, this could be a (just) profitable campaign. The other alternative is to reduce the CPC to $0.08, which could be possible on the content network and in the long tail.
It might also be worth a shot on PPV and I might do that next.
Warriors, any thoughts?
All the very best, Allen
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