CPA vs. CPC: Which Is Better?

With a recent survey from Quidco pointing out that consumers are not hitting comparison shopping engines as they have in the past, marketers have wondered if that also spells the end of the cost-per-click advertising model.

by Kristina Knight

According to the survey, one in three UK shoppers have stopped using comparison shopping engines. With so many of these engines using a cost-per-click platform advertisers aren't getting the same return on investment as they have in the past. Does that mean that CPC models should be abandoned?

Mike Brown, CEO and President of HealthPricer said, "CPC tends not to show all products [so consumers] don't get as accurate information because CPC engines receive data feeds. Consumers have a tendency to see results sorted based on who paid the most."

HealthPricer uses a cost-per-action model that has caught on with consumers. According to Brown the company sees nearly 100,000 unique users each week logging on to compare prices on nearly 400,000 different products. Since turning to the CPA model they have seen conversion rates increase by as much as 80% for their advertisers.

To ensure the best information for consumers, HealthPrices crawls websites daily to get the most up to date information. Because merchants often rely on advertising copy on their sites, a typical data feed might not catch a price reduction or other change. By crawling the sites, HealthPricer can find and advertise those daily changes.

With a CPA model and with fresh, relevant information HealthPricer is hoping to get more consumers back to comparison shopping online.