How in the world should I price that ad?
Greetings DMSers. One of the big conundrums with our digital media startup business plans is the revenue section. Most of you are using advertising in some way as a revenue source. Advertising is appropriate as long as its implemented in effective ways that do not turn off members of your market.
There are many details that you’ll need to think through in terms of your advertising plans. Some of those topics include:
- What types of advertising will you use?
- Where in your product will those ads appear?
- In the case of sponsored content, how are you going to be transparent to your market in the labeling of these paid-for spots?
- How much are you going to charge for each category of ad you’re going to sell?
To help get us started on that last bullet, take a look at some of these resources:
- Quirk’s Online Advertising Guide: this is helpful to think of the different areas, sizes and options in web pages for advertising.
- Digiday’s 2013 article showing how much it costs to run certain types of ads on well-known sites.
- Promise Media offers a section identifying how to develop online ad rates, rates cards and more.
- Association Media Publishing has a great list of key terms you need to be familiar with in the online advertising area. Some of these terms are also covered in Briggs but not all of them.
We’ll chat more about this in class as we continue to develop our business plans.