A little while ago I was introduced to a very niche, affluent publication. They had found me because I had gotten my client into a bigger, niche, affluent publication and they wanted to see if I would spend my client’s money with them as well.
So they gave me the pitch. More niche, more affluent, more engaged audience. But less circulation, and they were asking for about the same amount of money.
I managed to get the cost down to half the price. Awesome rationale I sent to the sales rep below:
The magazine I have bought before has almost a 200,000 circulation. We built out the ad buy to incorporate other advertisers in the community and, what we charged partners, their CPM contribution was about $2.86. After that client’s contribution was about $62.86. This was with a spread ad. And the community is happy with the results so we’ll be doing it again this year.
The new pub’s circulation is at 80,000. They have as much affluent, and probably more loyal, followers. And this is an annual coffee table book. So let’s assume the value is higher for each eyeball we reach with this. If we increase the CPM contribution to $3.00 for partners and $100 for the primary client, and we would only have 4 partners instead of 6 because we’re only doing a full page and it would be really squished to have more than that on there.
Partner contribution: $240 a piece (let’s just keep the math clean and say $250). So $1,000 from them.
Primary client contribution: $8,000
The most my calculations say I’m willing to pay is $9,000. I told the pub that I’d even move it up to $10,000 if they offered some online stuff. But I can’t justify $20,000.
And they agreed. 🙂 Now shhhh. Don’t tell anyone who’s paying full price!