Cost Per Action

Written by Patricia Tunstall
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The cost per action on Internet advertising primarily turns on two factors. The first revolves around the amount of detailed effort the advertising agency puts into the development of keywords. The actual number of pre-qualifying forms people fill out is another factor, as this is the basis of per inquiry advertising.

The advertising agency does not just put ads on the sites of search engine organizations. Your goal is to get leads from potential customers who are interested in your product or service. In order to accomplish this, the agency ascertains the best keywords that will cost you the least amount of money.

Turnkey Operation

All details are handled by the agency, which makes this a "turnkey" operation, that is, for you, the operation is as simple as turning a key. The cost per action comes into play only when a viewer has clicked on your ad, and then fills out a pre-qualifying form that asks for personal information. Name, address/zip, and email address are basic, but you could request any other information, such as credit card data.

Per inquiry advertising means you pay only for the number of inquiries, or leads, that your ad generates. This pay-per-lead approach to running commercials cuts the cost per action significantly because media airtime is not a factor. If you wish, you can get real-time reporting of your results so you can stay on top of the progress of your campaign and make changes as you go.

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