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Advertising Forex

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This is a Forex Guest Post provided by Diego Ruiz, Forex Trader and Business Developer since 2003

A lot of the advertising methods are used on other sectors and not only in the Foreign exchange field. I will pay special attention on the prices and characteristics which I have experienced while I was working for different broker companies:

CPM means "Cost Per Mil". This is a well-known method where the advertiser and the publisher discuss the number of impressions and negotiate on a fixed price which is based on the cost of 1,000 impressions. This method usually applies only for banners.

CPC means "Cost Per Click". This method is mostly used by Google where advertisers bid on keywords relevant to their target audience, and the cost per click is determined by a variety of factors including bid amount, ad relevance, and competition. Like the CPM models both sides can usually measure the exact number of clicks which users clicked on the banners and pay according to a fixed cost per click. This method is not too popular in Forex trading.

CPA means "Cost Per Action": This is the most popular method where a banner is placed for free and if a user clicks on the banner and eventually opens an account and deposits money  this stands for an action. This method gives the broker full control. But have in mind: not all brokers are honest and some may not report all the conversions. While this option sounds lucrative in the first instant - the brokers pay $100 to $400 per cutomer - it can be tricky. A publisher may place a banner for a long time and do not see a single cent even if the broker is honest.

CPL means Cost Per Lead. It is the same method like CPA but the publisher will be paid for leads and not for clients. There are more leads than clients than deposit but the payout is smaller: usually $8 to $25 per lead.

My personal opinion: Some companies only want to spend little money in the Forex advertising field. That is why I do not like and recommend CPA models. These companies are making the whole time publicity for free until a user opens a real account but the profit for a website owner is very low compared to the mass of time where a banner is reserved. You should have in mind how much you have to pay for a newspaper advertisement in a small town for only one day and that is generally much more expensive. And principally you can reach more people over the period of for example a month than only one day. In my opinion the companies should generally pay a reasonable price for Forex advertising like it is standard in other fields.

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