CPS advertising campaigns are a good choice for more traditional product offerings

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CPS stands for Cost-Per-Sale, it is a payment model according to which advertisers are charged for sales generated by publishers via ads placed in the publishers mobile or desktop inventory. CPS is a specific case of a broader CPA (Cost-Per-Action) advertising payment model. CPS can be calculated with the following formula:

CPS = Total cost / Total sales number.

This metric significantly varies from one digital or physical product sold digitally to the other. This model is particularly beneficial to advertisers because it allows them to minimize their marketing and advertising costs.

In this directory, we’ve aggregated for you the best CPS Advertising Networks

CPS Advertising Benefits

Once the creative assets for a CPS advertising campaign have been created, each sale is then tracked up to the point of purchase. It’s a valuable metric in this regard as it isn’t an estimate, but rather the actual total.

CPS advertising campaigns are a good choice for more traditional product offerings, allowing advertisers to track each sale of a product. This can work well in the mobile app space – examples include in-app purchases and other services purchased within an app.

It’s possible to measure the profitability during an ad campaign, but this doesn’t always reflect user behaviour; some will come back at a later date to purchase a product, and this is a potential shortcoming of CPS.

Other CPS benefits include:

  • It’s a low-risk model, where every sale is trackable
  • CPS offers analytics, visibility and control over the campaign
  • Optimization is quick and easy to implement

The benefits of cost-per-sale (CPS) affiliate campaigns are numerous. For one, they minimize the marketing and advertising costs for independent software vendors. When running a CPS campaign, you pay only after a sale (involving an actual credit card transaction) has been completed. This is in contrast to the potentially risky structure of other marketing and advertising options where costs must be compensated upfront, and despite the success or failure of the campaign.

For another, cost-per-sale affiliate marketing reduces your vulnerability to frauds. You can incorporate robust fraud protection by banning IP addresses that have been involved in fraudulent behavior in the past or banning the use of prepaid credit cards for point-of-sale transactions. You can also monitor malicious form stuffing and take action against those IP addresses. However, cost-efficiency and fraud-protection are not the only reasons why CPS campaigns make great marketing strategies.

Five reasons online software companies should consider CPS Affiliate Marketing:

1. Publisher-centric

Cost-per-sale campaigns are more publisher-focused than cost-per-click and other campaigns, which allow little control to publishers. It’s a fairy low-risk strategy to attract new customers to your software and services. It allows the publisher to track their spending because with the CPS model, you only pay commission if a lead resulted in a completed purchase/sale.

2. Wider reach

One of the factors that works in favor of CPS campaigns is the affiliate network associated with it. You can easily reach hundreds of thousands of virtual customers across the globe, who are regular audiences of your affiliates.

3. Longer exposure

In addition, you can have your banner displayed on an affiliate’s network for an unlimited period of time. With CPC and other campaigns you do not have the same advantage.

4. More control

In general, the CPS model has a stronger correlation between the campaign and banner quality and the eventual number of sales. Thus, by controlling the quality of the former, you can influence sales and revenue. In addition, CPS campaigns allow you to control such things as IP addresses and clicks generated by bots.

5. Easy optimization

Cost-per-sales marketing strategies allow for active, accurate real-time reporting, which you can use to optimize campaigns later. Analytics with advanced capabilities such as frequency-cap implementation and monitoring of effective cost-per-acquisition rate, provide you with a more accurate set of acquisition cost metrics. In addition, you can track the source of purchase for up to a month after they visit your website, and leverage the information to fine tune targeting and placement.

So to sum it up, not only does CPS affiliate marketing offer greater reach, visibility, control and analytics, but it can also pays for itself (because you only pay after a sale). If that’s not an effective marketing tool, what is?

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