• Marketing Team

Advertisers: Setting Your CPA

Updated: Jun 20, 2018

Make sure you know your CPAs from your elbow & how to set them in SwapUp with this quick overview...

What does CPA mean?

CPA stands for Cost Per Acquisition and is the pricing model that we use at SwapUp.

Performance marketing specialists consider this to be the best possible solution for advertisers with the end goal of selling a product, because it means that you only pay once you convert a sale and win a new customer.

Why is it important?

Understanding CPA is important to make sure that your SwapUp campaigns are as profitable as possible both short and long term.

How can you work out your own CPA?

CPAs are defined as a percentage against the value of a sale. E.g. if you were to sell a product for £10 and it has cost you £1 to acquire your new customer then your CPA would be 10%.

Because every Advertiser is different, you will likely find that the way you calculate your optimum CPA differs from others. Additionally, typical Costs per Acquisition can vary widely from industry to industry.

Our model rewards Consumers for their commitment by giving them more to spend with Advertisers when they SwapUp. As a result, the higher your CPA, the more the customer gets for their money and the more attractive your offers are likely to be when they are presented through SwapUp.

When calculating your CPA for SwapUp, it is important to find a good balance that ensures a healthy level of profit for you as an Advertiser, while also giving you the best possible chance of converting sales.

Not only should you consider your margins for each product including fulfilment, but also take into account the value of repeat business. Customers that purchase your products via SwapUp and have a positive experience are likely to come back for more.

Setting your CPA in SwapUp

We give Advertisers the ability to set CPA at product level so that you can be sure that you have full control over this important metric, for every sale that you make through our platform.

E.g. If you are selling a product through SwapUp with an RRP of £20 and you set your maximum CPA as 10% (£2) then the amount you will receive for that product will be £18 or more.

CPAs can be applied against a range of different conditions including: number of sales, time & date parameters & more.

To find out more about working with CPAs in SwapUp & how our platform gives Advertisers full control over their campaigns, click here.

You may also find the following resources regarding CPAs useful:

Wikipedia: Cost Per Action

IAB: Digital Media Buying & Planning Glossary

Social Media Explorer: Why Cost per Acquisition Is the Only Metric That Really Matters

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