In the world of internet advertising, negotiation is an everyday occurrence. A competitive cost-per-thousand (CPM) can make or break a campaign, especially if you have cost-per-lead (CPL) goals. In this instance, by Internet advertising, I mean banner advertising, getting your product or service on relevant websites, in order to directly sell a product, gather lead information, or increase awareness.



With the tracking capabilities on the internet, many companies develop CPL goals, how much money is put in to accomplish the desired outcome. When dealing with CPL goals, CPM is where it all starts, how much are you paying for 1,000 eyeballs (technically 2,000) on your banner advertisement. This is a bit idealistic, as often the ad isn't seen, if it's below the fold or loads slowly, but those are counted anyway.

Never trust the rate card

With CPL goals, the difference between a $5 CPM and $7 can make a break your campaign. As the internet becomes an increasingly seductive dumping ground for advertising dollars and internet advertising is better understood and better leveraged, websites may begin to think that they have the upper-hand. But remember, you have the money.

Depending on the website, an advertiser can get 20%-75% below the rate card CPM, maybe more. Try a test campaign, which will often run at a lower rate and below the minimum buy. After you have your statistics from the campaign, then you can either work with the site or you have data back your asking for an even lower CPM.

Shoot low

An obvious tactic in negotiation is to shoot low. Negotiations are guaranteed to meet somewhere in the middle. Ideally the final rate is mutually beneficial. Always let the website offer a rate first if the rate card is unknown, this way you have a starting point. If you say something that is dramatically over their expectations, you're screwed. If you know the rate card CPM, play dumb and mention something considerably lower.

In the end, you are trying to find something that helps you hit your CPL goals. If you have to be patient to get that rate, do so.

Book multiple months

Booking multiple months can be great, in that you will probably get a lower rate, but it can also be detrimental in reaching your goals as the longer an ad is on a website, the more likely it will become stale to frequent site users.

If you have put in your test campaign and put in another solid month, and you are still seeing good results, book a multiple month campaign. You may want to take a month off first and then come back strong. This lets your website reps know that you are in it for the long run, will help foster a relationship and may include added bonuses.

Find your style

Every person that I've worked with has their own negotiation style. Some are more up-front, some are sneaky, some reveal goals and successes, and others play it cool. One thing I do recommend is being nice. It can get you add-ons which may help you reach your goals and helps develop a relationship that may extend beyond your time at your current company.

When I'm in negotiations, I present my goal structure. If the campaign is killing it, I let the rep know that we have found a good fit. I attach stupid pictures in emails. Work doesn't have to be boring and negation doesn't have to be painful.