Cost per Activity (CPA)

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When a mobile consumer sends requests for additional content in the form of, for example, e-vouchers, audio files or video clips, then the advertiser is charged a nominal amount in terms of their budget by the web-driven platform supporting the marketing campaign. Each of these requests is defined as an activity, and as such, the pricing model is broken down in terms of a cost-per-activity. The amount payable by the advertiser is then a function of the number of requests for additional information from the mobile consumer, multiplied by the agreed cost/activity. The pricing model was created by Mobilitrix, a mobile solutions company based in Cape Town, South Africa. i.e. The advertiser only pays when a potential consumer accesses additional information or content as prompted by a static piece of media (POS poster, billboard, TV, radio or print advertisement). c.f. The PPC (pay per click), a.k.a. CPC (cost per click) model.


History

In February 2008, after three years of R&D, Mobilitrix, a mobile solutions’ provider based in Cape Town, South Africa, launched its website offering a suite of interactive mobile marketing tools. Mobilitrix Founder and CIO, Andrew Cardoza, an expert in satellite and cellular communication technology, with a NASA background, coined the term CPA during the beta phase run-up to the mobilitrix.com website. The Mobilitrix site empowers marketers (from SME’s to blue chip corporate) by giving them tools to cheaply create advertising and consumer interactivity by providing consumer downloadable content via SMS request, thereby extending the reach of traditional print and above-the-line media ad-spend. e.g. Where classic print media revenue traditionally gets sold short by standard ad space use and the number of issues sold, Mobilitrix revitalises the hold on the target market, creating new revenue flows in the following way: A potential property buyer desiring further specs on a house advertised in newsprint can request additional information by using a keyword from a mobilitag icon on the featured ad. By sending the keyword to a five-digit short code number via SMS, the individual instantly receives additional information and images back via their mobile phone.

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