|
By DWIGHT MCKENZIE
TPA Advertising Director
Many a discussion has and is taking place about developing a rate structure that includes bundling. When a company has multiple products, newspaper, niche publications, web, TMC products or others, bundling rates may be an option for increased sales.
Sales people find it difficult with clients to sell multiple products because each is priced differently and the advertiser views the product as an added expense. It doesn’t matter to the client that circulation or greater exposure provides for increased reach, it’s just another expense. You know, if you buy this it’s….and for a few dollars more it’s….and we also have….? Get the picture? Enough is enough.
Pricing is psychological. If you price an item for $19.99, but the original cost is $20, doesn’t $19.99 “sound” much cheaper? Bundling eliminates the “add-ons.” Breaking down the cost becomes much more explanatory and easier for the sales person to present.
For example: most advertisers want to know what “bang” they are getting for the bucks…right? Thus, start talking about readership and eyeballs. Not circulation. If you have a paid distribution of 5,000 your newspaper readership is approximately 13,700*.
If a quarter-page ad cost $362, then the cost to reach each reader is $.0264. That’s right, 2.6 cents per person. So let’s say you bundle a special section with your website. This means placing the special section on your website and you can keep it there for 30 days or 12 months, your choice. Thus, the cost for special section is $362 and you add another $50 for the website, total cost is $412.
Figure the unique visitors per day/month; add to your readership numbers and then breakdown the cost per eyeballs. Let’s say you have 1,000 unique visitors per day, add to your readership, 13,700 and now you have 14,700 people “reading." Total cost per reader is $.028. That’s right, 2.8 cents per person. Which sounds better, $412 or 2.8 cents?
Choose the product(s) you might want to bundle, but be cautious and not complicate the bundling structure. For instance, don’t bundle ALL products into one rate. Not all your advertisers will be “suited” for every product, although that’s what we may think.
The bundling rate structure can be per column inch or flat rate, your choice.
Call or e-mail Dwight McKenzie at 512-477-6755 or
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
for more information. |
