CPA (cost per action) and CPL (cost per lead) advertising in Russia

RMAA Group operates in CPA-advertising segment which is fairly new for Russia. Followed by Europe and the United States it becomes a very popular marketing strategy that enables to generate targeted treatments of users while minimizing the risk of an advertiser.

Cost per action - advertising on the Internet without risk to the advertiser

Trend of modern online advertising market is CPA - abbreviation of cost per action, “pay per action”. This model of collaboration of a customer with a CPA-agency provides payment for a specific result. The result is a “beneficial action” committed by a potential client of a customer:

• Filling in the questionnaire, query, or application form;
• Registration on the site;
• Subscription;
• Collection of information of interest;
• Price review;
• Placement of goods in the wish-list;
• Upload (download) of an online application, etc.

Each of these events pushing the consumer to buy in their own way is negotiated and rated by our experts and denoted by a short but succinct term – “lead” (Eng.). The procedure of obtaining leads is called, respectively, lead generation.

Benefits of voluntary activity of potential clients

Lead generation enables business to make a huge push at the cost of a sharp increase of the field-oriented clients` flow. In this case, we undertake the task of “clients delivering”, so the businessmen no longer need to organize the advertising campaigns by themselves, to keep marketing professionals, to keep statistics and perform an analysis of collected data as well as to solve other marketing tasks.

Leads have a number of unique advantages:

• “deliver” the most promising, “quality” consumers who has already interested in specialized goods or services;
• are generated by legal means, as the result of voluntary activity manifested by the client;
• are the most up-to-date, as they are transferred to customers “hot” - literally within an hour;
• are, in fact, the material carrier, as they are recorded in paper or electronic form.

Let`s summarize!

While using all available traffic, we select only those consumers who are interested in a certain product or service at the same time we get not only their “contacts”, but actually the permission for feedback - e-mail or phone call. We give the customer a high quality base of field-oriented clients, which with high probability is converted into sales. That is the charm of CPA-advertising.

Additional bonuses of lead generation

Originally lead generation is an aspect of business promotion without risk of loss. Customer`s benefit is obvious - he pays only for results. He must neither coordinate all advertising tricks with contractors nor approve layouts or pay for production of video clips, and then, looking forward to the result, worry about the possible errors and miscalculations of the staff or invited marketers.

In addition, the leads allow to maximally specify the task by the use of certain constraints. The customer can select a particular product need to be promoted, the most interesting area, the social status of the consumer and even the cost of the lead – generally speaking, any parameter allowing the customer to select the most "high-quality" consumer of a huge audience.

We also provide our customers with the ability to set a monthly amount of leads that they can really handle. (This factor is important for the optimum budgeting of their business.) Of course, the average accuracy like "plus one or minus one" is not guaranteed, but the overall volume of leads marked in the client application is controlled by us.

Where are the leads from?

So far, there are four general areas of lead generation:

• contextual advertising;
• conversion of organic traffic of successful internet projects with a high level of attendance into leads;
• affinity marketing.

So that our customers do not pay for all traffic incoming to their websites, we have to do a lot of work. Lead generation requires very serious intellectual and time spending. In order to attract the target customers we often use the capacities of different types of advertising (PPC, banner, media, outdoor) as well as the methods of search engine optimization, advertising in social networks and so on. We apply both our own design and classic techniques to provide customers with the field-oriented consumers able to provide desired profitability.

To determine the most effective way of lead generation in case of each specific order we take ​​testing and evaluation of profitability of some of the most appropriate sources. Therefore, the budget of each particular campaign is different for different business sectors.

How do the leads look like and what are they supported with?

Most of the time, the lead represents an application drawn up in a certain format and containing a small amount of information: contact data of a customer (name and “e-mail” or phone number), and briefly, the essence of his request. We usually transferred a lead to the customer, or as they are generated, or in the shape of the package - formed in table.

Our system provides for certain canons of lead rejection. They may be "targeting" the wishes of the customer. Leads got by means of some sources, are confirmed, because otherwise they just will not be informative. If the customer is interested in getting the most "warmed up" clients, leads are transferred to him as soon as possible and, of course, are not confirmed or rejected.

Moreover, for each of the covered areas we keep statistics of the lead quality and received denials. If the mass customer denials are fixed under one of them, our specialists will immediately adjust the generation policy.

How much do the leads cost?

Some customers, who prefer classic options for cooperation with advertising agencies, consider the lead generation market insufficiently transparent because of its peculiarities of pricing. The main pricing principles are simple:

• the harder it is to get an interested consumer, the more it will have to pay for it;
• leads for different categories of business are acquired at different prices.

Overall a fork of cost per unit ranges from 0.5 to 100 US dollars and takes into account not only the subject and complexity of the lead generation, but also the budget of the customer and the potential generating capacity.

Examples of pricing:

• «hot» e-mail confirmed by a user for Internet trading costs about 0.8-1.5 US dollars; potential generation (for all Russia) - up to hundreds of thousands of leads;
• download of mobile-application by a user will cost about 1.2 US dollars, while the volume of lead generation depends on the operating system used by the application, as well as its rating and quality;
• bank loan application (for all Russia) costs from 4 to 9 US dollars (depending on the rating of the bank, the type of loan, types of channels used to get traffic); potential generation - tens of thousands of leads;
• auto insurance (for capitals of both Moscow and Leningrad regions) costs about 8 US dollars; potential generation - up to 8-10 thousand.

Development prospects for lead generation market

Many experts see the future of the advertising market in the sale of leads as a ready marketing product. Services for lead generation will multiply and improve, taking on the risks to "supply" quality clients to the customer in the required amount as quickly as possible.

The purpose of CPA-service today is the click availability of lead generation. Ideally, the customer should only choose the category of desired lead, settle targeting and pay for the selected package.

Until now the main focus for lead generation were the banking and legal sectors. An increase of budgets in CPA-segment in e-commerce, construction, tourism and automotive sectors, in the “Forex” markets, mobile applications and applications for social networks has already been observed today. Such directions of lead generation as education (linguistic centers, training for personal growth), medicine, auto repair, etc. are also considered as promising.

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