Trying to define "CPA"

[Seascape]

Yes, we know that acronym is "cost per action" and technically all of the commissions are based on the web surfer taking some kind of action.

But what does CPA really mean?

Has it come to denote the sector of this business which is based more on things like email/zip submit offers, free/low-cost diet trials, as opposed to actually selling a physical product?

For instance look at the networks... CJ, Linkshare, & Shareasale are mainly about selling physical products (traditional ecommerce) whereas networks like A4D, Flux, & Hydra are more about the "win a free iPod" email submits and Acai/Green tea offers? Are the latter types of offers+networks closer to what "CPA" now means?

Would gathering leads for things like debt consolidation, loans, and insurance colloqually be considered "CPA", whereas selling, for example, childrens clothes from CJ is not?

Edit: for some more context, it was the Mar 19 "Venus & Mars" blog post that got me thinking about this.

 

[Linda Buquet]

Yes you have it right - CPA is offer based (free trial, win an ipod, etc).

CJ and other affiliate networks are pay per sale/product based.

Lead gen offers are pay per lead but can be found in both CPA networks and affiliate networks - more often in the latter.

 

[Seascape]

Thanks Linda. I had been wondering about the definition of CPA for a while because as Rae mentions in her Sticky article above, it can be "all encompassing". It would be nice if people made the distinctions by using terms like "CPL" and "CPS" but nobody uses those. CPA is what has stuck. Although most would say it means "cost per action" it truly has become to mean "cost per acquisition"... which implies leads.

I did some more digging and probably the best article that sets it straight for me is this from 2005: The Rise of CPA Ad Networks - ClickZ and this quasi-followup from late 2008: Ad:tech NY 2008: Social Media Wins Exposure - ClickZ

So yea, CPA has become to mean mostly about lead generation.

 

[Seascape]

Well, maybe it would be closer to say "CPA has become to mean mostly about offers" .. which by extension, leans toward lead generation.

Another thing I noticed in the Venus & Mars article...
http://www.dmconfidential.com/blogs/column/Digital_Thoughts/2187/
...do the folks in this who sell physical products tend to call themselves "Affiliate networks" and the ones who push offers are called "CPA Networks"?

Because I've noticed that the CPA networks are starting to call themselves "affiliates" too. Even the former CPAempire now goes by Affiliate.com

 

[Linda Buquet]

Well CPA affiliates ARE affiliates and CPA networks are affiliate networks,
by virtue of how they technically operate. (referrals via affiliates)

So it's like the 2 are the same species, just a different breed. If that makes sense.