7/10/2014
1
“What Should I Charge?” -
How to Price Native Advertising
#nativead14 VP, Advertising Products
Salt Lake City,...
7/10/2014
2
• We know what‘native advertising’is
• We have (or are building) a native product
• We’re primarily local medi...
7/10/2014
3
Source- “All Eyes on Native Advertising, Despite Uncertainties” – eMarketer, 05/16/13
“In April, 2013 BIA/Kels...
7/10/2014
4
Buzzfeed- $100K for 4-5 listicles. As
low as $5K with minimum spend of $50K.
Studio@Gawker-
$300K-500K, includ...
7/10/2014
5
• Content Creation
• Homepage
Impressions
(headlines)
• Story Impressions
(articles)
• Social Impressions• Soc...
7/10/2014
6
Native Advertising Value Chain
Brand Strategy
Content
Strategy
Content
Creation
Publication
& Merch
Promote
Ex...
7/10/2014
7
What Should I Charge?
How to price Native Advertising
7/10/2014
8
Content PricingContent Pricing
What Should I Charge?
How to price Native Advertising
7/10/2014
9
Distribution PricingDistribution Pricing
Promotion Pricing
What Should I Charge?
How to price Native Advertisi...
7/10/2014
10
• Which services do you provide?
– Brand strategy, content strategy, content creation,
publication, promotion...
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How to Price Native Advertising

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How to Price Native Advertising presentation from the Local Media Association Native Advertising Summit

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How to Price Native Advertising

  1. 1. 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
  2. 2. 7/10/2014 2 • 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. ↑ • $$$... What Should I Charge? How to price Native Advertising
  3. 3. 7/10/2014 3 Source- “All Eyes on Native Advertising, Despite Uncertainties” – eMarketer, 05/16/13 “In April, 2013 BIA/Kelsey estimated that native spending in the context of US social media advertising would climb to $4.57B in 2017, from $1.63B in 2012. In every year in the forecast period native spendingperiod, native spending will grow at a faster rate than display spending.” Source- “All Eyes on Native Advertising, Despite Uncertainties” – eMarketer, 05/16/13 What Should I Charge? How to price Native Advertising
  4. 4. 7/10/2014 4 Buzzfeed- $100K for 4-5 listicles. As low as $5K with minimum spend of $50K. Studio@Gawker- $300K-500K, including 12- 16 pieces. Individual posts as low as $12K with minimum spend of $50K. Business Insider- $5K sponsored post, $15K sponsored video. HuffPo- $40K per post, including 4 days’site promotion (20M impressions). Source- “How Top Publishers Handle ‘Sponsored Content’” – Digiday,06/14/2013 Forbes- $50-75K/mo., minimum 3 months. Quartz- $80-90 CPM. What Should I Charge? How to price Native Advertising
  5. 5. 7/10/2014 5 • Content Creation • Homepage Impressions (headlines) • Story Impressions (articles) • Social Impressions• Social Impressions (side door traffic) • Social Actions (Likes, Comments, Shares) • Article Actions (Shares, C t )Comments) • Engagement Time • Story Completions • Scroll Depth • Display Ad CTRs • Brand Lift What Do I Charge For? $$$$ $$ $$$ $ $$ What Should I Charge? How to price Native Advertising
  6. 6. 7/10/2014 6 Native Advertising Value Chain Brand Strategy Content Strategy Content Creation Publication & Merch Promote Externally Analytics & Reporting Understand Key brand Execution: Scheduling Social media CTR to storyUnderstand brand message and target audience Establish goals and metrics y messages Linkage to publisher content Headlines Text Images Video g Multiple access points Relationship to other content Email 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. 7. 7/10/2014 7 What Should I Charge? How to price Native Advertising
  8. 8. 7/10/2014 8 Content PricingContent Pricing What Should I Charge? How to price Native Advertising
  9. 9. 7/10/2014 9 Distribution PricingDistribution Pricing Promotion Pricing What Should I Charge? How to price Native Advertising
  10. 10. 7/10/2014 10 • 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

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