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Pay Per Action (PPA)

Pay Per Action (PPA)

Adjective

Pay per action (PPA) advertising is a performance-based marketing model where advertisers pay only when a user completes a specific, pre-defined action. This action could range from subscribing to a newsletter or filling out a form to downloading an app, making a purchase or reaching a designated stage in a sales funnel.

Unlike traditional advertising models that charge for impressions or clicks, PPA focuses on tangible results, ensuring that advertisers only pay for measurable outcomes. This approach aligns the interests of both advertisers and publishers, as advertisers get more value for their money by paying only for successful conversions, while publishers are incentivized to deliver high-quality traffic and optimize their platforms for maximum user engagement.

PPA advertising offers multiple benefits, including improved ROI, increased transparency, and better control over advertising budgets. It allows advertisers to target specific actions that align with their marketing goals, such as generating leads, driving sales or increasing brand awareness. While similar to cost per click (CPC) marketing, where companies pay for each click on an ad, PPA goes beyond simple clicks to focus on more meaningful conversion events.

Example:

Liam ran a pay per action ad campaign for his online sock store in which he paid each time a user purchased a pair of socks.

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