CPC, CPA, CPL: defining 3 web marketing channels
Webmarketing ensures your sales development through web-based prospecting and loyalty channels. Uncompromising definitions: CPC, CPA, CPL.
To develop your sales on the Internet, it's important to define a webmarketing strategy, set objectives and measure the profitability of each channel (ROI). Link takes an uncompromising look at the 3 most profitable channels in the IT sector, if 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. Find out all our tips on lead generation.
CPC definition
The acronym CPC stands for " Cost Per Click". CPC is used for advertising spaces such as Google Adwords. You know, those ads at the top, bottom and right of every Google search page.
The CPC business model for your SEA (Search Engine Advertising) campaigns remains much the same. If an Internet user clicks on an ad (in Google, for example), or on a button linking to your site (in a comparator, for example), you'll 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 set up to satisfy the highest bidders. On Google Adwords, for example, it's not uncommon to see CPCs of several dozen euros per click. Price comparison sites often set a fixed CPC at just a few euros.
CPA definition
CPA stands for " Cost Per Action". CPA is to action, what CPC is to click. This action takes several forms. All begin with the letter "A", so pay close attention to the Action behind each CPA:
- Acquisition of a prospect on a form
- Subscribing to a freemium offer
- Purchase of a paid service by a new customer
The Cost-Per-Action business model is highly prized by Marketing Directors, because it's a performance-based webmarketing channel: the service provider's remuneration is directly linked to the webmarketing strategy and budget defined in advance.
This lever therefore responds to a precise acquisition, subscription or purchase objective. Its cost is logically higher than that of CPC, and varies from a few euros to several dozen euros, depending on the action taken on the services promoted.
CPL definition
CPL stands for " Cost Per Lead". But what does this actually mean? Quite simply, a lead is a business opportunity that a webmarketing agency or comparison-shop offers you.
A lead can take many forms. It's generally an identified prospect (name, company, email address, telephone number...) with a qualified project (decision-maker, need, average basket, start date...). All your sales force has to do is contact this lead to turn it into a customer.
The Cost Per Lead (CPL) business model presents a cost per performance directly proportional to the number of contacts generated. A CPL sales opportunity is generally more qualified than a CPA sales opportunity. On the other hand, the action of transforming this opportunity into a customer remains for your sales reps with a CPL.
CPL depends on the type of lead (rarity, sector of activity...) and varies from a few euros (contact 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 specialized sites will help you reach your targets. But beware of disappointments and budgets that can quickly explode.
Would you prefer to optimize your marketing budget with performance-based campaigns where you only pay for defined actions? In that case, the CPA option is the best choice, as you define in advance the maximum authorized 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 business sector. Leads are a rare commodity, and you need to be careful to turn them into customers.