May 13, 2010

Forex Crunch Advertising on Forex Sites

Forex Crunch Advertising on Forex Sites

Advertising on Forex Sites

Posted: 13 May 2010 02:00 AM PDT


Following an article I wrote about forex advertising in 2010, I got some questions about what goes on behind the scenes. This article lays out the 5 different advertising methods, how they work and how they are priced.

Most of the advertising methods are used on other fields, not only forex. I hereby focus on the prices and characteristics that I’ve experienced here which are forex-centric of course:

  1. CPM: Cost Per Mil. This is the most straightforward and transparent method – the advertiser and the publisher discuss the number of impressions and negotiate on  a price. The price is based on the cost of 1,000 impressions. Both sides can easily measure the number of impressions – the most transparent method. This method usually applies only for banners that are “above the fold” – banners that can be seen without scrolling down the page – an impression is always real. The pricing varies, but can depend on benchmarking Google AdSense performance.
  2. CPC: Cost Per Click. This method is mostly used by Google. Also here, both sides can usually measure the exact number of clicks that users clicked on the banners and pay according to a fixed cost per click. The problem here is detecting fraud – clicks that aren’t real. Google has developed sophisticated tools for this, but others haven’t, so this method isn’t too popular. In forex trading, Google banners can have an effective CPM of  $4 to $10, depending mostly on the location of the banners.
  3. CPA: Cost Per Action: This is the most popular method. The banner is placed for free and if a user clicks on the banner and eventually opens an account and deposits money, this is an action / acquisition. This method gives the broker full control. When the user leaves the publisher’s site, the publisher loses the ability to track the actions and solely relies on the broker’s reporting. As seen in this article, not all the brokers are honest, and some may not report all the conversions. Michael suggests trying to follow your banner and see if its reported. While this option sounds lucrative ($100 to $400 per cutomer), it may tricky. A publisher may place a banner for a long time and see a cent – even if the broker is honest. The next two methods have the same shortcomings uncertainty.
  4. CPL: Cost Per Lead. Same as CPA, just that the publisher is paid for leads and not for customers. There are more leads than customers than deposit, but the payout naturally smaller: $8 to $25 per lead.
  5. Revenue Share: In this method, the publisher shares the revenue from the customer throughout the lifetime of the customer. Needless to say, revenue from a customer is complicated to calculate, but it’s usually based on a share of the spreads. A publisher needs to trust the broker / ad network and test the results.

I hope this sheds some light.

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Forex Daily Outlook – May 14 2010

Posted: 12 May 2010 02:00 PM PDT


Consumer confidence is rising and so is Industrial Production and Capacity Utilization Rate showing a good climate in the US market. In Canada, BOC Deputy Governor John Murray speaks in Ottawa and Manufacturing Sales are up showing an overall positive air to the leading economies. Let’s see what’s on the menu today.

In the US, consumer confidence is rising according to the Prelim UoM Consumer Sentiment report. It is expected to show an increase of 1.3 points from April’s 72.2 points.

Later in the US, Core Retail Sales is anticipated to drop from 0.9% in April to 0.5% together with the retail sales report showing an even larger expected decrease of 1.6% from 1.9% in April.

More in the US, Industrial Production is expected to move up by 0.5% a good indicator for the market’s recovery and so is Capacity Utilization Rate intended to rise by 0.6% from 73.2% in April showing an increased demand in the market and may affect inflation rates.

Finally in the US, Business Inventories also correlates to the rising demand in the US market, expected to drop by 0.1% from 0.5 in April and Preliminary UoM Inflation Expectations is expected to follow April’s rate of 2.9%.

In Canada, BOC Deputy Governor John Murray participates in a panel discussion at the Carleton University, in Ottawa. May affect interest rates and give clues on future monetary policy.

More good news in Canada, Manufacturing Sales are expected to edge up by 1% from 0.1% in April indicating healthy activity in the market.

Finally in Canada, New Motor Vehicle Sales are expected to decrease by 3.9% compared to April’s rise of 8.1%.

For more on USD/CAD, read the Canadian dollar forecast.

In Europe, Deutsche Bundesbank President Axel Weber delivers a speech titled “Lessons for monetary policy from financial crisis” at the 12th annual Inflation Targeting Seminar at the Banco Central do Brazil, in Rio de Janeiro. May affect interest rates and give clues on future monetary policy

For more on the Euro, read the EUR/USD forecast and Casey Stubbs' latest analysis.

In Great Britain, The Conference Board’s Leading Index released monthly is expected to remain around 0.6%.

Read more about the Pound in the GBP/USD forecast.

That’s it for today. Happy forex trading!

Want to see what other traders are doing in real accounts? Check out Currensee. It's free.

Forex Daily Outlook – May 13 2010

Posted: 12 May 2010 02:00 PM PDT


US unemployment claims expected to drop this month, Federal Reserve Chairman Ben Bernanke speaks in Philadelphia and Federal Reserve Governor Donald Kohn participates in a panel discussion in Ottawa.  In Europe the economic recovery is underway although it is set to be a gradual one. Let us see what awaits us today.

In the US, Unemployment Claims is foreseen a reduction of 5000 from 444K in the previous month an optimistic sign for US economy.

Later in the US, Federal Reserve Chairman Ben Bernanke speaks about reinventing older communities at the Federal Reserve’s Conference, in Philadelphia and Federal Reserve Governor Donald Kohn participates in a panel discussion titled “Monetary Policy and Lender of Last Resort” at the Centre for Monetary and Financial Economics Conference, in Ottawa Currency rates could be affected and future monetary policy may be disclosed.

More in the US, Import Prices are expected to rise by 0.1% from the previous month may bring up inflation rate.

Finally in the US Natural Gas Storage is expected to rise this month from 83B to 102B.

In Canada, BOC Deputy Governor Pierre Duguay participates in a panel discussion at the Carleton University, in Ottawa.

For more on USD/CAD, read the Canadian dollar forecast.

In Europe, European Central Bank Monthly Bulletin is released providing a detailed overview of recent economic and monetary developments in the euro area in the form of text and statistics with a detailed analysis of current and future economic conditions from the bank’s viewpoint.

For more on the Euro, read the EUR/USD forecast and Casey Stubbs' latest analysis.

In Great Britain, Trade Balance is expected to increase its deficit by another 6.5 B 0.3B more than in the previous month. This could weaken the sterling.

More in Great Britain, Department for Communities and Local Government House Price Index measuring the change in the selling price of homes is expected to rise this month by 1.5% compared to 7.4% in the previous month.

Read more about the Pound in the GBP/USD forecast.

In Australia, Employment Change is expected to edge up to 22.6K from 19.6K in the previous month. This will have a positive impact on the market.

More in Australia, Unemployment Rate is expected to remain 5.3% keeping unemployment rate at almost half the level of the U.S. and Europe.

Finally in Australia, Reserve Bank of Australia, assistant Governor Dr. Philip Lowe speaks at the Colonial First State’s Investment Forum, in Sydney may effects key interest rates and gives clues regarding future monetary policy.

For more on the Aussie, read the AUD/USD forecast.

In New Zealand, Retail Sales are expected to climb to 1.2% after the previous drop of -0.6% as well as Core retail sales also expected to rise to 1.5% after a fall of -0.9% indicating that New Zealand’s economy recovers from its recession largely due to improved consumer confidence, which has led to a pick-up in household spending.

In Japan, Economy Watchers Sentiment I expected a rise of 0.4 points from 27.4 points in the previous month and Prelim Machine Tool Orders measuring the Change in the total value of new orders placed with machine tool manufacturers has increased considerably in the previous month and is expected to have a similar increase this month as well which is a good indicator to the market’s productivity.

That’s it for today. Happy forex trading!

Want to see what other traders are doing in real accounts? Check out Currensee. It's free.
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