Magazine Advertising RatesPeriodical advertising prices
Determining the ad prices for a magazine
To determine the ad rates for a magazine, you need to know which advertiser is willing to spend and what you must make to remain in the business. This can be done by analysing not only rival journals, but also other places where your advertiser spends his or her cash, such as for example television, radio and the intranet.
Establish real prices with a prospective advertiser poll and a basic competitive comparison equation. Gather your competitors' kit files. Mediapits contain the advertising rates of a magazine, paper, website or broadcaster. Examine the tariff maps in these multimedia packs to calculate their costs per thousand or CPM.
That is the cost that an advertisers must buy to get to 1,000 of them. If, for example, a paper has a print run of 50,000 and an ad is $3,000, the paper's CPU is $3,000 split by 50 = $60. Determine your ad rates depending on whether you want your SPM to be higher, lower, or equal to your competition.
When you have a more appealing or original edition, you can increase your prices. When your audience is similar to your competitors, you may need to lower your SPM as you are an unfamiliar size. Generate your own rebates. For example, if an affiliate purchases more than one ad, give that affiliate a rebate.
Put different prices on different bulk purchases. If, for example, you post every month, you can determine the price of an ad on the basis of a one-time, three-time, six- and twelve-times-agreement. Generate packet prices. By selling exhibition area in your magazine and advertising banners on your website, offering live advertising on your subscriptions lists, and including blow-in maps or multi-part client promotional material, you can combine different purchasing option sets.
If, for example, an affiliate purchases three advertisements, you can give them a free ad on your site. You can give an ad provider a percent rebate on all three if they buy a printed ad, a flag ad and a blow-in map. Join or call prospective marketers to talk about what they would be willing to spend on advertising in your magazine.
Publishers who think you are trying to build a magazine that will help them get to their audiences in a cost-effective way are more likely to give you real-life insights about how often and at what prices they will be advertising in your work. Make a budgeting for your magazine.
When you have a finite number of pages you can afford printed and mailed, and you know what percent of your magazine you want to use for editing and advertising, you can use these numbers to determine your ad rates. If, for example, you want to produce a 48-page magazine and have an advertising to editing rate of 50-50, you need to recover your costs and make a profit on the sale of 24 pages of advertising.
When you need $48,000 to pay for the cost, inclusive of overage, of an edition of your magazine, you need to define your ad rates to be $2,000 per page. When your print run is 50,000, your maximum number of CPMs for a full page is $40.