Cost per acquisition is one of several different strategies on the market for Internet advertising. However, from the perspective of the business, cost per acquisition or CPA is a great strategy because you only pay when you get what you want; visitors that become customers and actually buy your product. However, this is a little more difficult from the perspective of the advertiser that hopes to get paid, which is where ideas like attribution modeling and retargeting companies come into the mix, making sure that your product is as well received and purchased as often as possible when it comes down to brass tacks.
Attribution modeling is a strategy that solves what's called the "last click" problem. The "last click" difficulty is that when a purchase is made, only the most recent click on a banner ad gets the credit. Which is fine if someone just sees a banner, clicks that banner and then makes a purchase. However, if someone sees a banner, then goes to Google or Yahoo and searches for the company described in that banner then they won't earn the credit and that generates bad information. This form of modeling shares credit equally, making sure that all parts of the advertising process are compensated equally when multiple banners or ads have a hand in making a sale.
Retargeting companies are firms that specialize in getting your website's or company's ads placed in certain locations on destination websites, making sure that your ad space is visible and attractive, placed where it is most likely to pull customers and readers back to your initial website. These companies also ensure that your links are connected, building a strong and simple to trace chain so that you know who is responsible for certain advertising credit and so that you're sure to whom the credit goes once you've confirmed a sale.
And what makes all of this easier than pay per click advertising? Well, when you use pay per click there's no guarantee that the click that you register is the one that's responsible for a given purchase. In fact there's no guarantee that the click was for a purchase at all! While it is important that your ads get clicked, and your advertisement professionals should work with that goal in mind, you need to make sales and paying for people to look at ads won't get you that. Cost per acquisition solves all these issues.
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