Saturday, July 31, 2021

Cost Per Click (CPC) Marketing Vs. Affiliate Marketing: The Differences

Performance marketing has gained a lot of traction in the past few years. Let us explore the aspects of it, focussing on Cost Per Click (CPC) and Affiliate Marketing techniques.

Performance marketing means the type of marketing that relies on the marketer’s good, average or bad performance at spreading the word about the said product or service. Performance marketing has slowly emerged as the most reliable, popular and quickest way to let people know about your brand. It involves reaching out to people with strong connections and public networks in order to introduce your brand or product in the market. It is different from pyramid marketing as it does not follow a set structure of networking, instead relying on the marketer’s goodwill amongst people.

Cost Per Click (CPC) Marketing

A CPC model is a part of an extensive PPC (Pay Per Click) campaign that targets audience that is most likely to increase your conversion rate. Cost Per Click (CPC) actually means how much you, as an advertiser, will pay for each click that you get from a visitor to your ad. This average depends on two chief factors- your conversion rate (because not every visitor turns out to be a potential customer) and your level of optimization when it comes to ads.

Affiliate Marketing

The concept of affiliate marketing has the same undertone as CPC. The execution, though, is different. In affiliate marketing, the business pays a collaborator to promote the products and services on the basis of merit. The affiliate earns money on every sale he/she helps in making. The premises might be the same as CPC marketing, but the sales average here does not depend on the conversion rate or level.of optimization. It instead depends on your popularity.

CPC vs. Affiliate Marketing

  • Model vs. Practical Approach

Whereas CPC is a model of affiliate marketing that is implemented as a contract between the dealing parties, affiliate marketing is the practical approach that exists. For instance, in affiliate marketing a brand, a collaborator can choose the Cost Per Click avenue to gain regular rewards.

  • Technical vs. Non-technical

CPC marketing tactic is known to be formal, strict and structural. It involves a set formula by which the affiliate gets paid for each sale. In affiliate marketing without CPC, the structure is a lot more relaxed and informal- meaning there might be a percentage, perks or other rewards set between the parties for generating sales.

  • Suitability

The most important difference between the two is the structural suitability of both. For a number of industries and brands, affiliate marketing without CPC model works best- for example fashion brands, boutiques and other luxury lifestyle related services. Others like exercise products and services, firms that deal with fields like law and/or insurance and other online businesses make the best use of the CPC model.

Long story short, CPC marketing and affiliate marketing run very close in meaning to each other, having minor textural differences only. It all comes down to your industry and firm’s long-term vision and goals. The decision rests on individualized factors like how many rewards you wisht o give out for online sales tactics and how beneficial this train of process is for you.

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