What exactly does CPA mean?
In affiliate marketing, a CPA is a fixed reward for a predetermined target action. In iGaming, such an action is often a confirmed FTD, but before launching, you need to separately agree on its definition: minimum requirements, permissible sources, GEO, confirmation terms and possible KPIs.
Why a single bet number is not enough
| Parameter. | What he's changing |
|---|---|
| CPA | Basic income for a confirmed action. |
| KPI | Determine what actions are considered high-quality and paid. |
| Hold | Affects the period of final confirmation of the result. |
| Cap | Limits the amount that can be given during the period. |
| GEO and source | The rate and quality requirements may change. |
Example of economic evaluation
If the advertising campaign brings 40 confirmed FTDs, and the agreed rate is a conditional $120, the gross affiliate income according to a simple formula is $ 4,800. But to evaluate a campaign, you need to subtract advertising costs and take into account the share of rejected actions.
Campaign Profit = Confirmed FTD × CPA – Traffic Costs.
If the value of a confirmed FTD begins to approach the CPA rate, scaling without improving the funnel becomes risky. It is useful to look not only at clicks, but also at CR in registration, CR registration in FTD and confirmation percentage.
When CPA's more convenient
CPA is often more understandable for media buys and campaigns with a fast cycle of hypothesis testing: budget and outcome can be matched over a short horizon. But a fixed rate prevents a partner from participating in the long-term value of an active audience. Therefore, for some sources, it is more profitable to consider RevShare or Hybrid.
Checklist before launch
- Define the definition of paid action.
- Clarify KPI, hold and cap.
- Coordinate the source of traffic and GEO.
- Check the rules of using the brand and creatives.
- Configure SubID or postback to match statistics.
You can compare the models on the page paymentPrepare the campaign parameters through partner tools.