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“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

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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

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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

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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

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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

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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

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

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What Should I Charge? How to price Native Advertising

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Content PricingContent Pricing

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Distribution PricingDistribution Pricing

Promotion Pricing

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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