Banner Advertising - CPM vs CPA Costing Methods
There are millions of people already using banner advertising. For those of you who are new to network marketing, or at least new to banner advertising, you really need to know the difference between CPM (cost per thousand impressions) and CPA (cost per action). The ability to utilize the knowledge of banner advertising and the difference between CPM and CPA could potentially save you hundreds of dollars and make you with even greater returns on investment.
CPM (cost per thousand impressions) is one method of billing that represents your costs if a website shows your banner advertisement one thousand times. An "impression" is the term used to describe when your banner advertisement loads on a website. Most websites only charge $2.00 to $5.00 as the CPM rate. Be wary of any website that offers a guaranteed click through rate or is wanting to charge much more than $5.00 - $6.00 as a CPM rate. Some websites are looking to take advantage of new or rather inexperienced network marketers by charging as much as $15.00 as their CPM rate.
CPA (cost per action) on the other hand, is another method of billing that represents how much you will be charged each time your banner advertisement has action taken on it. You can get some really good positions for fair pricing through most sites by using CPA, which can be improved even more when you contact the advertising agent for the website directly and negotiate a better rate. Some people are even able to negotiate rates as low as 40% of the original advertising rates.
So the question is how can this knowledge make your life easier?
That part is easily explained by the following.
- Once you have found a website that you want to run your banner advertising campaign on, contact the advertising manager (or whatever they call their position) and negotiate your CPA rate.
- Run a small test campaign with your banner advertising resources, i.e. banners and links.
- Figure out how well your test run did.
- If it did well contact that ad rep again and negotiate your CPM rate to run a larger banner advertising campaign.
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