NONE: re: ad rates and negotiations
re: ad rates and negotiations
Jeffrey T Phillips (jtphilli_at_stern.nyu.edu)
Fri, 9 Aug 1996 18:30:00 -0400 (EDT)
I've been reading and learning a lot from to the list for two weeks
now. I think the following might be helpful to Donna.
> Donna wrote:
>
> >>>
> Many of the people I'll be approaching about advertising on my site are
> newbee advertisers who may not realize negotiation is possible, and may
> just not be responsive if the price is too high for them.
>
> I've got some ideas on this, but I;ve never actually sold ads (for my site
> or anywhere else), so I'd appreciate some pointers.
>
I know someone already suggested a trial rate and I just wanted to
offer my knowledge on how some magazines use a kind of trial offer.
I'm currently working at a magazine consultant where we regularly work on
magazine launches. A common plan we suggest is Charter Rates. These
rates are limited time rates that provide low initial rates at different
frequency levels. They are most effective with weeklies and other
publications with a high frequency of publication. The goal is to get the
advertisers to commit to Charter 1. Then step up to Charter 2, and then
commit to the full rate because they were so satisfied with the results of
their advertising. This enables you to work on getting a long term
commitment from the advertiser and really building your business. It also
avoids letting the advertiser off of the rate card. I'm sure lots of
advertising people have experience with negotiating off of the rate
card, but in our consulting experience it is a bad precedent to set.
Advertisers begin to expect it and publishers wonder why they are not
making any money when they have a magazine full of advertising. The key is
to structure rates with incentives such as a step up charter program,
frequency discounts, and new business deals where you can monitor the
impact of the deals.
Of course, the magazine metaphor may not work very well with banner
advertising as the click thru discussion illustrates. Also, saw Leah's
message about bidding for the banner based on the quality of the target
audience delivery. That seems to be the best suggestion. Who wants your
audience bad enough they are willing to pay for it.
Hope this is helpful.
Great list.
Jeff
(my signature file is from my out of office life.)
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