Page 178 - Duct Tape Marketing

162 Part III: Creating and Placing Ads

Making sense of print media rate cards

Every publication has a rate card that defines pricing, deadlines, and
mechanical and copy requirements. Here are some definitions of key terms:

ߜ Bulk or volume rate: A reduced rate offered to businesses that commit
to place a certain amount of advertising over a contract period.
Increased volume results in decreased rates.

ߜ Closing date or deadline: The date by which ad material must be to the
publication if your ad is to appear in a certain issue.

ߜ Cash discount: A discount allowed by media to advertisers who pay
promptly. Watch your bill and reduce the cost of your media charges by
up to 2 percent by settling your bills quickly.

ߜ Column inch: A column inch is 1 column wide by 1 inch high. Most

newspapers measure ad space in column inches, though they used to

measure by the agate line, which equals ⁄1 of an inch. Once in a while

14

you’ll still see ad rates quoted in agate lines. Just multiply by 14 to arrive

at the price per column inch.

ߜ Cost per thousand (CPM): This is the cost of using a particular medium
to reach a thousand households or individuals. (You’d think that the
abbreviation would be CPT, but the accepted term uses M, the Roman
designation for thousand.) CPM allows you to compare the relative cost
of various media options.

The CPM formula: Media rate ÷ circulation or audience × 1,000 = CPM

If a full-page newspaper ad costs $2,200, and the circulation is 18,000,
the CPM $122.22. ($2,200 ÷ 18,000 × $1,000 = $122.22)

ߜ Combination rate: This is a discounted rate offered to advertisers who
buy space in two or more publications owned by the same publisher or
by affiliates in a syndication or publishing group.

ߜ Earned rate: The rate that you pay after all discounts are applied.

ߜ Flat rate: The cost of advertising with no discounts.

ߜ Frequency discount: A reduced rate offered by media to advertisers
who run an ad a number of times within a given time period.

ߜ Local or retail rate: A reduced newspaper ad rate offered to local or
retail businesses. If you are placing ads in an out-of-town paper but sell-
ing your product through or in connection with a local business, see
whether the local business can place your ad or if you can receive the
local rate by mentioning the local business in your ad.

ߜ Make-good: This is a no-charge repeat of your ad, which you can request
if your ad ran with a publisher error or omission.