Business FAQ

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Cost per Action (CPA) refers to ad campaigns tied to a specific action (i.e. a direct sale, a lead, a download, a software install or even a phone call that lasts a certain amount of time). VPM’s Media Partners, marketing the ads on behalf of our merchant clients, place links on their websites, in emails, or use other methods to drive traffic to the advertiser’s landing pages, where the consumer is presented with the desired “call to action”. Once a required action is validated by VPM’s tracking technology and the Advertiser, the Media Partner is paid a commission or bounty.

What is unique about VPM’s CPA Services?

VPM’s Performance CPA is a Premium CPA Performance Marketing Solution delivered as a Managed Service to Advertisers and Agencies. VPM extends the reach of an advertiser’s current marketing tactics into a large pool of premium display inventory and other highly-targeted media tactics, delivered through top-performing Media Partners that drive targeted traffic to a single advertiser offer – and are subsequently compensated for valid leads or sales.

How does PERFORMANCE CPA differ from alternative Digital Marketing tactics?

In traditional media networks, impressions (or media inventory units) are optimized by the respective network technology being employed to serve ads into that inventory. With PERFORMANCE CPA, the supplied media is optimized by the Media Partners themselves. The Media Partners thereby assume the full risk of the inventory value, and count on the revenue from the “actions” exceeding what they could otherwise have received by selling the inventory on a CPM (Impression) or CPC (Click) basis. This ad distribution and media monetization model is called “Publisher-Optimized Cost per Action” (PO-CPA).

What advantages does the PERFORMANCE CPA solution have over other CPA ad distribution solutions?

The primary alternative to our PERFORMANCE CPA service is for the advertiser or agency to run campaigns in CPA Networks, or in Affiliate Networks. CPA Networks are generally “blind” to the advertiser/agency, but offer managed support. Their reach is limited by the number of brand name advertisers they have running offers in their network. Since Vega Performance Marketing (VPM) has relationships with many of the World’s top advertisers, our PERFORMANCE CPA can offer more quality offers to the top Media Partners, and we use that as leverage to generate a higher volume of quality CPA ad distribution.

Affiliate networks are generally “transparent” to the advertiser/agency, but must be self-managed by the client. Also, the majority of Affiliate networks use proprietary technology that is often outdated and lacking many features desired by advertisers and agencies. The requirements of managing an Affiliate network internally create burdens on advertisers that are costly and inefficient. Affiliate Networks’ distribution is typically limited to a “walled garden” of Media Partners, and offer limited optimization technology and minimal support services. In contrast, VPM’s PERFORMANCE CPA campaigns are managed by experts in the industry, leverage a community of direct Publisher relationships, and use state of the art technology to reach more top Media Partners World Wide.

In summary, VPM’s PERFORMANCE CPA out performs other CPA campaigns by:

  • Offering a wider reach of premium CPA ad distribution
  • Leveraging our Performance Media Marketplace to systematically identify the optimal media partners and segments
  • Employing expert campaign management to continually adjust distribution channels, and refine creative and promotion tactics to optimize performance to drive the highest quality CPA

What is the difference between relying on a traditional Media Network optimization tools vs. VPM?

Media Networks place ads on third party sites, either into inventory owned and operated by the Network company or inventory purchased from Partner sites. To drive your PERFORMANCE CPA program, VPM may work with Media Partners (Publishers) of various sizes and vertical focus. While it is possible some Media Partners may participate in both arenas, there is no duplication due to the nature of how publishers who focus on CPA campaigns allocate their inventory and serve ads. Two examples of VPM’s PERFORMANCE CPA Media Partners are Retailmenot.com (coupon, ranked 201 in U.S. by Alexa) and mypoints.com (loyalty, 663 in U.S. by Alexa). These are large, established companies that because of their business models cannot run network ads. They must have direct control of what ad campaign is running so that they can optimize traffic around a specific offer.

PERFORMANCE CPA Media Partners have vertically focused content, such as Music.com, member based clubs such as e-Miles.com and mypoints.com, opt-in email lists from companies like InfoGroup, and technology from W3i. For example, e-Miles and mypoints.com have millions of members who receive offers targeted to their demographic profile and receive rewards for participating. InfoGroup has millions of opt-in email address and W3i distributes the very popular weather.com application.

PERFORMANCE CPA Media Partners are established companies in the industry that are fully vetted by VPM’s PERFORMANCE CPA Team. Media Partners who work with VPM in the PERFORMANCE MEDIA MARKETPLACE represent 80% of all PO-CPA media spend online (~$4B US, $12B WW in 2011*). *Estimated based on data extrapolated from IAB reports and other companies that follow online advertising spend, including the financial reports of the public companies that serve the CPA industry.

How are PERFORMANCE CPA distributed ads monetized by VPM Media Partners?

VPM’s Media Partners are paid within 25 days based on their performance generating valid leads or sales. VPM applies a commission on top of each transaction, with the combined commission presented to the Advertiser Client as the CPA. VPM commissions are based on a competitive standard book rate that is negotiated with each Advertiser Client.

How is the Client’s Brand protected?

VPM only works with established companies in the Performance industry. Each Media Partner is fully vetted by VPM management and is governed under strict contractual obligations as a third party publisher. Each publisher must accept the aggregate of terms required respectively by Impact Radius, VPM and any Agency/Client-stipulated terms associated with each campaign offer. (Read about additional Security and Fraud Prevention practices and policies in “Protecting Your Brand”)

What about Transparency?

Option 1: Extending CPA Spend or Starting a New CPA Campaign, follows standard VPM policy; no site-level transparency in terms of volume of actions or payout to Media Partners. Client will have access to the publisher recruitment list and the option to approve all Media Partners prior to activation.

Option 2: Exclusive CPA distribution via the Performance Media MarketPlace. If an Advertiser/Agency runs CPA programs with Media Partners exclusively through VPM, we will manage the direct recruitment of Media Partners in the Performance Media MarketPlace. Advertisers can have site level transparency on actions and operate under a negotiated commission rate. Under this option, the Client may not run that CPA program in any other CPA or Affiliate Network, and must agree to a minimum one year term. (*Examples of other CPA networks include Commission Junction, Google Affiliate Network, LinkShare and ClickBooth).

What is VPM’s organizational structure?

Our leadership team and Advisory Board include top industry leaders in the online performance industry. Our core Operations Staff, Business Development and Account Management teams work seamlessly with our strategic Business Partners to provide campaign management and technology infrastructure for distributing and serving ads, tracking conversions and managing Media Partner payouts. The VPM service organization has managed both domestic and international CPA campaigns of various types, across several industry segments.

Operations FAQ

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How are ads served, tracked and reported on?

Impact Radius is our default platform which Media Partners use for access to campaigns, acquiring authorized creative, reporting and payments management. Clients may choose to serve ads using their own ad servers, including Microsoft’s Atlas platform, DirectTrack, LinkTrust and others. If ad serving is managed directly through the Client’s Atlas account, Impact Radius is a member of the Atlas UAT program and tracking code can be easily implemented without having to add code to the advertiser’s site.

Impressions, clicks and actions are tracked by Impact Radius for each Media Partner in the Performance Media MarketPlace. If the Client’s system is serving the ads, both systems will track accordingly. VPM will issue reports to advertisers or their agencies monthly, or at a time period of their choosing. All payable actions will be validated by the Client and billed per standard VPM terms and procedures.

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