Banner Advertising - CPM vs CPA Costing Methods

Guest post by: Gabriel Walton
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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.

Utilizing the knowledge of a website's CPM and CPA rates is the best way to establish an effective banner advertising campaign. Remember, designing an effective banner advertising campaign can save you hundreds to thousands of dollars, and potentially make you just as much or more.

If you are interested in learning more about how to market effectively or need education on marketing techniques, visit my site. Sign up for information on effective marketing strategies and marketing education. If you need any further guidance, feel free to contact me via email or through my blog.

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Writing Business Articles - By Gabriel Walton

About the Author: Gabriel Walton

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Gabriel Walton is President and CEO of Walton Marketing Enterprises. Gabriel is an expert in business growth and skills mastery for the generation-y audience. He has been training workers and business people since 2002. His leadership skills and training experience have often made him the "go-to" guy for educational purposes and public speaking events. He has written many publications for online resources utilized for education on business and personal life structuring. He works and resides in northern Colorado with his wife, Susie and children.

"Knowledge is a weapon used to combat complacency, ignorance and failure. I hope to arm as many people as I can," he says.

Visit my Blog at http://www.gabrielwalton.com.

Click here to visit Gabriel's website.

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