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How to Price Native Advertising presentation from the Local Media Association Native Advertising Summit
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7/10/2014
1
“What Should I Charge?” -How to Price Native Advertising
#nativead14 VP, Advertising Products
Salt Lake City, UT
WHAT IS NATIVE ADVERTISING?
What Should I Charge?How to price Native Advertising
7/10/2014
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• We know what ‘native advertising’ is• We have (or are building) a native product• We’re primarily local media companies
• Display is dying– CPMs/CTRs↓
• Mobile is here– real estate ↓, U/X ↓
• Demand is high
Why Native?
g– brands need platform
& audience• It’s incremental
inventory– or, shove another ad
in the right railin the right rail• Engagement is higher– CTRs, time on page,
social sharing, etc. ↑• $$$...
What Should I Charge? How to price Native Advertising
7/10/2014
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Source- “All Eyes on Native Advertising, Despite Uncertainties” – eMarketer, 05/16/13
“In April, 2013 BIA/Kelsey estimated that native
spending in the context of US social media
advertising would climb to $4.57B in 2017, from $1.63B in 2012. In every
year in the forecast period native spendingperiod, native spending
will grow at a faster rate than display
spending.”
Source- “All Eyes on Native Advertising, Despite Uncertainties” – eMarketer, 05/16/13
What Should I Charge? How to price Native Advertising
7/10/2014
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� Buzzfeed- $100K for 4-5 listicles. As low as $5K with minimum spend of $50K.
� Studio@Gawker-$300K-500K, including 12-16 pieces. Individual posts as low as $12K with minimum spend of $50K.
� Business Insider- $5K sponsored post, $15K sponsored video.
� HuffPo- $40K per post, including 4 days’ site promotion (20M impressions).
Source- “How Top Publishers Handle ‘Sponsored Content’” – Digiday, 06/14/2013
� Forbes- $50-75K/mo., minimum 3 months.
� Quartz- $80-90 CPM.
What Should I Charge? How to price Native Advertising
7/10/2014
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• Content Creation• Homepage
Impressions (headlines)
• Story Impressions (articles)
• Social Impressions• Social Impressions (side door traffic)
• Social Actions (Likes, Comments, Shares)
• Article Actions (Shares, C t )Comments)
• Engagement Time• Story
Completions• Scroll Depth• Display Ad CTRs• Brand Lift
What Do I Charge For?
$$$$
$$
$$$
$
$$
What Should I Charge? How to price Native Advertising
7/10/2014
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Native Advertising Value ChainBrand Strategy Content
StrategyContent Creation
Publication & Merch
Promote Externally
Analytics & Reporting
Understand Key brand Execution: Scheduling Social media CTR to story Understand brand message and target audience
Establish goals and metrics
ymessages
Linkage to publisher content
HeadlinesText ImagesVideo
g
Multiple access points
Relationship to other content
Content distribution partnerships
y
Content views (Page views, video views, etc)
Social shares
Test brand lift and awareness
agency
publisher
promoter
integrated native publisher
What Should I Charge? How to price Native Advertising
7/10/2014
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What Should I Charge? How to price Native Advertising
7/10/2014
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Content PricingContent Pricing
What Should I Charge? How to price Native Advertising
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Distribution PricingDistribution Pricing
Promotion Pricing
What Should I Charge? How to price Native Advertising
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• Which services do you provide? – Brand strategy, content strategy, content creation,
publication, promotion, distribution, amplification, reporting & analytics?
• Which elements do you include?– Site navigation, article(s), sponsor ‘section’, evergreen
100% SOV f di l dcontent, 100% SOV of display ads• Which platforms do you leverage?– Desktop, mobile (smartphone and/or tablet), app?
• Which pricing model do you prefer?– Sponsorship- less risk (both sides)– CPM- higher risk (both sides)CPM higher risk (both sides)
• How does this fit within your rate card for other digital products?– Display ad parity?– Recognition of value and ROI?– What will the market bear?
@toddhandy@toddhandy
801.333.7446
What Should I Charge? How to price Native Advertising