What are some key differences between CPA and CPC advertising?

CPA (cost per acquisition) and CPC (cost per click) are two common pricing models used in online advertising. Here are some key differences between the two:

1. Payment structure: In CPA advertising, you only pay when a user takes a specific action, such as making a purchase or filling out a form. In CPC advertising, you pay each time a user clicks on your ad, regardless of whether they take any further action.
2. Cost: CPA advertising tends to be more expensive than CPC advertising, as you are only paying for conversions rather than clicks. However, the cost can vary depending on the specific terms of the offer and the competition for the keywords you are targeting.
3. Targeting: CPA advertising is often more targeted than CPC advertising, as you are typically only paying for users who are likely to convert. This can help you get more value out of your budget by focusing on high-quality traffic.
4. Conversion tracking: CPA advertising requires conversion tracking, which allows you to measure the number of conversions your campaigns are generating. This can help you optimize your campaigns and make data-driven decisions about where to allocate your budget.
5. Ad format: CPA advertising is often used for lead generation campaigns, where the goal is to capture contact information from potential customers. CPC advertising is often used for brand awareness campaigns, where the goal is to drive traffic to a website or landing page.
6. Campaign goals: CPA advertising is typically focused on driving conversions, while CPC advertising is often focused on driving traffic. This can affect the way you structure and optimize your campaigns.
7. Bidding strategy: In CPA advertising, you can use a CPA bid strategy, which automatically sets your bids to help you get the most conversions possible at your target CPA. In CPC advertising, you can use a CPC bid strategy, which automatically sets your bids to help you get the most clicks possible at your target CPC.