E-Media Strategist: 9 Tips for Optimizing Your Online Ad Pricing
Of course, the big assumption we're making here is that the relative value of print, e-mail and Web ads are all the same. Most publishers will argue that a print ad has more value than Web or e-mail; but really sit back and think about it. Some compelling arguments can be made about the value of Web and e-mail advertising such as concrete impression and click tracking, share-of-voice, etc. But if you don't agree with this assumption, adjust accordingly by aiming for different effective CPMs. The point remains the same: Evaluate your pricing rather than guessing.
The final rule of thumb I use when evaluating Web and e-mail pricing is simple supply and demand. I always shoot for 80-percent sell-through on a given position. If I'm significantly below that mark, then the position is over-priced or isn't getting enough sales attention (that's an entirely different article). Conversely, it may be nice if you continually sell out an ad position months in advance, but you're most likely underpriced and leaving money on the table.
These principles work not only for Web and e-mail ads, but for sponsorships, lead-generation and more. Granted, this is a simplified look at how to price your online advertising. Other intangibles exist, such as the competitive landscape, market cycles, market sensitivity to price thresholds and more. But hopefully you now have some additional tools to help you evaluate your ad pricing and maximize your online revenue potential. PE
Eric Shanfelt specializes in practical revenue-generating strategies for publishers. Read his blog at eMediaStrategist.com where he often responds to comments via his BlackBerry or iPod.
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