Dec
29
From an advertising standpoint, how much would you pay?
December 29th, 2008 posted by
admin
If you could put an ad in a targeted email newsletter that goes out to 10,000 people and the ad is exclusive (meaning no one else’s ad is in the newsletter except yours), how much is this ad space worth to you?
Love Canada says:
December 30th, 2008 at 2:28 pm
How much is it worth or how much can you charge?
Worth not much, sell for $400
Experience
jharm55 says:
January 1st, 2009 at 10:57 am
It’s formulaic, based on the product or service I would be trying to sell and how many people I would need to respond to the add in order for me to be able to sell enough to make up for and — by all means — exceed the amount I would have paid for the ad.
For instance: Let’s say I sell bowling balls and I make $10 on each bowling ball I sell. Then let’s say that for every bowling ball I eventually sell I have to receive three responses from the ad (meaning I only sell one out of every three times the phone rings or my site gets hit or I receive an e-mail). If 5,000 of the newsletter recipients responds to the add then I would sell 1,667 bowling balls and make a gross profit of $16,667.00. That’s probably a lot of money for a humble bowling ball seller, so I’d be willing to sacrifice at least half of the gross profit in order to make it happen. I’d be willing to pay $8,500.00 for the ad of which you write.
Now, the rub is that there’s no guarantee that anyone, let alone 5,000 people would respond to that ad. I’d have to see the “creative,” what will it look like, what is the overall message being presented, is it catchy, does it represent me and my product appropriately, is it being seen by people who want to buy bowling balls? In my experience it is the creative that gives the advertising its real value.
So, to answer your question in more general terms . . . it depends on the business, the product, the audience and several other factors but there is a way to have it make sense.
MarshaMarsha says:
January 2nd, 2009 at 11:10 pm
It depends:
How hard is it to reach the market (executives, moms, teens)?
For moms $1000
Teens $500
Execs $1500