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

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. 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

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. 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

5. 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

6. 7/10/2014
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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

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What Should I Charge?
How to price Native Advertising

8. 7/10/2014
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Content PricingContent Pricing
What Should I Charge?
How to price Native Advertising

9. 7/10/2014
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Distribution PricingDistribution Pricing
Promotion Pricing
What Should I Charge?
How to price Native Advertising

10. 7/10/2014
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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