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In Russia there is a saying that tit in the hand is better than crane in the sky (bird in the hand is better than two in the bush). The same principle is laid down in the affiliate networks - affiliate programs such as banner ads, where you pay not for an abstract showing of advert on the Internet, but for the real action of a client - app download / purchase the product from the website. Today, we describe the principle of operation of affiliate networks, one of the most profitable advertising opportunities on the Internet, find more in the material of RWAA Group.
CPA-networks - affiliate programs on the Internet, where payment is made for the targeted user actions - purchase a product, app download, registration or filling in the questionnaire, etc. CPA - an abbreviation of the concept of Cost Per Action, that is, pay per action.
The history of the development of affiliate network system in Russia has begun 7 years ago, but the result which we know, appeared just a few years ago. Surely, you remember or even now face the offers like: "Write the name of the person who contributed to make a purchase, and get a bonus." The principle of "friend's advice" was picked up and perfected, and later the advertiser`s partners have started to receive an individual link to the order form - referral link that made possible to keep track of customers, brought by each individual partner. This system was the first step towards affiliate networks.
Then the system has grown into advertising banner networks, which greatly facilitated the work of the advertiser and allowed to refuse from the acquisition of a difficult management software program on the site, as well as to let employees of banner systems solve technical problems. Together with individual links to each partner, they started to use special files - cookies. Cookies are the small pieces of data sent by a web server and stored on user`s computer; every time when you try to open the corresponding site, the browser sends the data fragment to the Web server along with the page request. Cookies allowed to track all user`s activity on the network and on the website.
CPA has several subtypes, they all depend on the type of paid activities. For example, CPM - Cost Per Download Model - is the price for download / upload. In Russia, there is widely used expression and model CPS - Cost Per Sales - price per purchase.
The biggest affiliate systems in Russia are Yandex Direct and Google Adwords. However, it would be wrong to say that they are working on CPA-model, though payment in these networks is made not for a showing but for a click on your link. For the moment, these systems are not ready to work on a deeper result and promise to take money only for the targeted user action - purchase or app download. Some sites, for example, cpainform.ru, offer a whole system of affiliate networks. This is an advantage in the work, because the work with every network is specific and organized in its way, so it is difficult to agree with all. While these resources themselves solve your problems with the arrangements, your only task is to pay and watch which network will bring the best results.
Other sites, such as, cpatop.ru, publish the rating of systems to facilitate the work with the system for advertisers. However RMAA Group recommends to carefully evaluate such sites, because the places in the rating often do not correspond to reality, because they are bought. Our experts will help you to understand and determine which CPA networks is perfect for your business and product.
Affiliate marketing system is not convenient to all websites, pay per action suits not for every field. Basically, this model is useful for those who use the Internet as the primary sales channel. Often it is referred to a commodity advertising.
The advertisement is made subject to certain conditions: for example, a ban of brand words, the rejection of traffic for ads from specific websites (for example, torrent or porn sites), and others. Webmasters track click-through rate of the ads, and if sending the traffic to the offer brings no income, they go to another advertiser. Therefore, most of these systems do not like working with the small companies, but with the large ones on a permanent basis, for a long time.
Affiliate programs are young, but do not stand still, and constantly develop, for example, at the moment, a special mechanism is implemented in many systems. It keeps track of all canceled and not finished downloads, and you can be sure that you pay only for completed downloads of your app/file.
However, advertising is only effective if it is properly configured to find the right audience. As in any system, there are pluses and minuses.
The hardest part of such advertising is, as previously stated, to choose the right words for an ad, define the audience and create a user's avatar, make an accurate targeting. Yes, it is not a system of CPC - pay per click, where you lose your money, invested in advertising, in case if the ad was set up incorrectly. In this case, it will be showed the wrong audience or the message of the ad will be misinterpreted and the result of advertising will be very long. Our experts will advise you on all kinds of affiliate marketing and help to set up your ad properly.
In Russia, the CPA-networks work only a few years. Of course, not in a perfect way as we would like. There are still a lot of tricksters on the market, there are no leaders (with the exception of the major search engines with their affiliate marketing), there are problems with communications and resource specialists. On the other hand, those who intelligently constructed their progress and turned to a proven systems, has already received their profits. Affiliate networks system has already recognized to be more effective than advertising in search engines and SEO promotion. Despite its youth, the system has been recognized as one of the best tools of advertising on the Russian market.
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About the Author
Ksenia Kuznetsova is the Editor of the Blog about Successful Marketing Strategies in Russia. She has been working at RMAA Group as a Assistent of Client Service Director since 2015. Ksenia has experience in planning and carrying out of advertising campaigns for foreign companies in Russia.