CPC, CPA, CPL: definition of 3 web marketing channels
Web marketing ensures your commercial development through web-based prospecting and loyalty channels. Uncompromising definitions: CPC, CPA, CPL.
There is an important framework for developing your sales on the Internet: defining a webmarketing strategy, setting objectives and measuring the profitability of each channel (ROI). Link takes an uncompromising look at the 3 most profitable channels in the IT sector if they are used wisely.
Before presenting the benefits of the CPC, CPA and CPL channels in detail, we need to define these levers and their economic model for use by publishers, resellers and integrators in the SaaS ecosystem. Read all our tips on lead generation.
CPC definition
The acronym CPC stands for " Cost Per Click". CPC is used in particular for advertising spaces such as those on Google Adwords. You know, those adverts at the top, bottom and right of every Google search page.
The CPC business model for your paid search campaigns, known as SEA (Search Engine Advertising), remains much the same. If an Internet user clicks on an advert (in Google, for example), or on a button linking to your site (in a comparator, for example), you will be billed for this "click".
In the case of Google Adwords (Google's advertising network), the CPC depends on a number of parameters and a bidding system is put in place to satisfy the highest bidders. On Google Adwords, for example, it is not uncommon to see CPCs of several dozen euros per click. Price comparison sites often set a fixed CPC at just a few euros.
Definition of CPA
CPA stands for " Cost Per Action". The CPA is based on an action, just as the CPC is based on a click. This action takes several forms. They all begin with the letter "A", so pay close attention to the Action behind each CPA:
- Acquisition of a prospect on a form
- Action of subscribing an Internet user to a freemium offer
- Purchase of a paying service by a new customer
The Cost Per Action business model is highly prized by Marketing Directors because it is a performance-based web marketing channel: the service provider's remuneration directly serves the web marketing strategy and budget defined in advance.
This lever therefore responds to a precise acquisition, subscription or purchase objective. The cost is logically higher than for CPC and varies from a few euros to several dozen euros depending on the actions taken on the services promoted.
Definition of CPL
CPL stands for " Cost Per Lead". But what does this mean in practical terms? A lead is quite simply a commercial opportunity that a webmarketing agency or a comparison engine offers you.
A lead can take several forms. It is generally an identified prospect (name, company, email address, telephone number, etc.) with a qualified project (decision-maker, need, average basket, start date, etc.). All your company's sales representative has to do is contact this lead to turn it into a customer.
The Cost Per Lead business model involves a cost per performance that is directly proportional to the number of contacts generated. A commercial opportunity by CPL is generally more qualified than a commercial opportunity by CPA. On the other hand, the action of transforming this opportunity into a customer remains for your sales reps with a CPL.
The CPL depends on the type of lead (rarity, business sector, etc.) and varies from a few euros (details of an Internet user who has downloaded a white paper, for example) to several hundred euros (a prospect with a qualified ERP integration project, for example).
So CPC, CPA or CPL?
Are you primarily looking for web traffic as part of a strong conversion strategy on your site or landing page? Focus your main budgetary efforts on CPC. Google Adwords and a number of specialist sites will help you reach your targets. But beware of setbacks and budgets that can quickly explode.
Would you prefer to optimise your marketing budget with performance-based campaigns where you only pay for defined actions? In that case, the CPA option is the best, as you define in advance the maximum authorised cost for each stage of your conversion tunnel that you can grant to a prospect who registers, tests or buys your solution.
Do you offer high-value-added services and have ambitious sales targets planned? Don't hesitate for a second, opt for 80% CPL as long as you can find enough suppliers for your sector of activity. Leads are a rare commodity and you need to be careful to turn them into customers.
Article translated from French