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Media Guru

Guru Search Results: 254 matches were found

Monday, April 18, 2005 #6901
Dear Guru, are cost per point or cost per rating point 2 different terms? and How to calculate cpm based on them? Thank you!

The Media Guru Answers(Monday, April 18, 2005 ):
The terms are the same; "point" means rating point.

Click for calculation of cpm


Saturday, April 02, 2005 #6877
Dear GURU, how can I calculate the cpm from CRP or CPP? Thank you!

The Media Guru Answers(Saturday, April 02, 2005 ):
At its simplest:

CPP is the cost of exposure to 1% of the target population, so

CPP ÷ 1% of target population expressed in thousands = cpm


Monday, March 21, 2005 #6859
Hello I am student of industrial engineering of polytechnic of Tehran. My thesis is writing a media planning software for media planning in Iran. In our country isn’t any media planner and we having not any software or book or manual about this subject at hand. In our country are not copywriting rules. Internet isn’t used suitable. We have not e-commerce. I want to know what software exist in the world of media planning. What is the most famous software and its parameters, variables and algorithms. I don’t have enough information about basic subjects of media planning: targeting, frequency, reach, continuity, cpm, GRP … If you may, please guide me. If you have any demo of media planning software, and if you may, please send to me. I know the value of your help. Regards; Ayoob Sadeghiani.

The Media Guru Answers(Tuesday, March 22, 2005 ):
eTelmar is media planning software from the Guru's organization, Telmar, world leader in media software. The programs are proprietary, and follow established practices in media planning. These are not likley to fit your country's practices.


Thursday, March 17, 2005 #6856
Hi Guru, when we talk about the media rates, why people always talk abut CPP or cpm, not just the price? Thanks.

The Media Guru Answers(Sunday, March 20, 2005 ):
If two stations offer an ad for $200 and one will have an audience of 1000 persons while the other has an audience of 1 million, then there is obviouly a reason to consider more than just price. CPP and cpm represent the cost / audience ratio. This is known as "efficiency."


Wednesday, March 02, 2005 #6829
If using cpm to price web advertising, what is the going rate? I've seen anywhere from $1/cpm - $35/cpm. Is there a standard?

The Media Guru Answers(Wednesday, March 02, 2005 ):
The range is much broader than you suggest. It depends on how broadly or narrowly you are targeting, and what your content quality standards are. Cheap is cheap.


Friday, February 25, 2005 #6814
Guru, we run :15 television spots as bookends in a commercial pod. My client wishes to count each :15 spot (2 per pod) as seperate commercials, i.e. counting GRPs as if each spot were a seperate :30. We do not recommend this, we recommend that two 15 spots are counted as one :30 spot. Do you have any research that proves the agency theory? Thank you!

The Media Guru Answers(Friday, February 25, 2005 ):
It depends on what you are doing, what conclusions you will draw from the GRPs. If you are projecting reach, then you must count these the same as single :30 units. If you are looking at cpm analysis and adjust :15 for value relative to :30, then again, it's more appropirate to evalue as if one :30. Actually, the Guru would be curious to learn the client's reasoning.


Wednesday, February 02, 2005 #6772
Hi Guru, We recentrly presented a print plan to our client which we believed would have been highly effective in reaching Prof./Manag Men 25-54. The client then proceeded to compare our impressions against the impressions delivered by their online plan which were significantly higher (20.4MM vs. 3.4MM). Is this really an apples to apples comparison? Is there another way to compare the efficiences of the 2 plans?

The Media Guru Answers(Sunday, February 06, 2005 ):
"Efficiency" is cost per thousand impressions. So, if that's your only standard, that's that. But experience should tell the client something about the value of a print impression versus an online impression. Generally, online impressions are less expensive than print or tv impressions. If the two plans had the same cost and print impressions were six times as numerous as online, instead of vice versa, among the defined target you specify, then something is wrong.

If the plan is direct response, each thousand print impression might deliver 5-10 times the response of online, if it's static rather than "rich" media.

Yes, there are other standards than efficiency. What else is important here?

In short, comparing print and online solely on cpm is foolish.


Wednesday, January 12, 2005 #6740
Hi Guru- Do you know of a resource where I can find a reported average cpm range for Direct Response Advertisers for magazine?

The Media Guru Answers(Thursday, January 13, 2005 ):
No. There are too many other variables such as ad unit and target and magazine type. YOu might be able to calculate from competitve spending records and rate cards.


Wednesday, December 22, 2004 #6726
I am looking for an up to date cpm rate comparison across traditional media that includes Blimp (Airship) aerial advertising. (TV, Cable,Radio, Newspapers, Magazines, Billboards, Blimps) The recall and retention rate with viewers of a blimp, unlike traditional types of media, is extreemely high - 70 to 80%

The Media Guru Answers(Sunday, December 26, 2004 ):
The Guru has not seen this in one place. Perhaps Outdoor Advertising Association of America can compare blimps to other out-of-home placements. Even something as "niche" as blimps has several variables: small to large tethered blimps or piloted blimps or radio controlled blimps. Blimps reaching enormous audiences on New York City public beaches versus much more targeted blimps at spoecific events.


Sunday, October 17, 2004 #6643
Dear Guru, In the past we used to assess media plans based on cpm. More than ten years ago, planners started to use CPP as a base of comparison and not cpm anymore. I would highly appreciate if you could elaborate on this evolution from cpm to CPP. Thank you & regards,

The Media Guru Answers(Sunday, October 17, 2004 ):
This is not an evolution, this is apparently how your company has changed. Both of these measures have been in use for 40 of more years.

cpm is a more absolute measure, while CPP is in relation to a target population.

Network buyers may look more to cpm, since they don't deal with geographies of varying sizes, while planners look more to CPP, which relates directly to GRP, a planning metric, from which reach and frequency are most readily calculated.

The growth of internet as a medium brings more emphasis to cpm, as CPP is not typically used in online media.


Friday, October 01, 2004 #6622
I have a really stupid question, but I think that I have looked at these cost per points and cost per thousand analysis until I have confused myself. I have three markets. Two of the markets of very small and the other is a larger market. Why is the cpm more in the two small markets and in the large market the cpm is higher. Cost per points are much lower in the small market, but why the cpm out of line? I hope this is clear. Thanks for your help.

The Media Guru Answers(Friday, October 01, 2004 ):
To oversimplify:
  • cpms are prices of exposure of1000 people and CPPs are prices of percentages for populations
  • CPP is much more likely therefore, to be proportional to market size; value of exposure to 1% of a market with 10,000,000 population is obviously greater than exposure to 1% of a market of 100,000 population
  • But why are 1000 people in the smaller market more valuable than 1000 people in the larger market? A couple of issues:
    -Fewer media competitors
    -Physical cost of operation represents a bigger portion of costs; i.e. if turning on the same lights, cameras and transmitters costs the same in both places, but a spot's price has to relate to population somewhat, there is a larger portion of spot cost paying for operations versus the portion that can reflect media value in small markets


Wednesday, July 28, 2004 #6554
hi, In this day in age would it be a good idea to purchase on-line advertising on a flat rate basis rather than on a cpm or impression basis? Thanks a lot Guru!

The Media Guru Answers(Wednesday, July 28, 2004 ):
The coin-of-the-realm is cpm, which is, in effect, a guarantee of audience. Nonetheless many smaller sites without sophisticated trafiic and server software still sell at flat rates.


Wednesday, July 28, 2004 #6553
What up G, Hi i was just wandering if there was a good resource for buying online Advertising as far as the prices i should be paying for it?

The Media Guru Answers(Wednesday, July 28, 2004 ):
No good broad resource. Realistic prices range from under $5 cpm for very general targets in simple ad formats, to several hundred for rich media advertsing to narrow niche b2b targets.


Friday, July 16, 2004 #6540
(Tuesday, July 13, 2004 #6536) My question needs to be restated using more facts. The digital screens are playing exclusively on college campuses and currently are in front of 1.1 million students (P18-24) daily. By end of year (2004) that number will easily exceed 2 million as more campuses being added daily. Campuses are located coast-to-coast, thus forming a nationwide network. Forty-two inch digital screens equipped with sound deliver a “loop” anywhere from 9-20 minutes long each day for one week. Playing between commercial messages are campuses messages (making it a “must read” for students). Would you then consider it competitive to network TV, albeit, even a small cable net? Would cpm’s closer to TV be more realistic than outdoor? It's TV, Place-Based Media, OOH all rolled into one. How do you judge this 16 ton gorilla? Thanks…RON TUN

The Media Guru Answers(Saturday, July 17, 2004 ):
The value here is in the highly desirable college student audience, rather than any comarison to network TV. As a program environment, it still is not very desirable otherwise.

It is small compared to the college universe, as well.

Compare pricing to the various campus media of 360 Youth


Friday, July 16, 2004 #6539
Our automotive agency is using propritory research using GIS to match past buyers to PRIZM Clusters then using MRI reports to target our best prospects in media buys. All reporting is based on indexes. Narturally cable is intexing much higher than broadcast television but I am having difficulty explaining that an Index is only an indication of interest - not people. I am concerned about using 100% cable and missing the reach possible with broacast in markets where cable penetration is 50-75%. Am I looking at this wrong or how could I better explain my position?

The Media Guru Answers(Friday, July 16, 2004 ):
It isn't clear what you're indexing, nor why it's "natural" that cable does better. It isn't clear why GIS maps tell you something that the PRIZM / MRI data didn't, and the Guru is a big fan of GIS mapping, himself.

You may have too many links in the system. What not just plot customer data base on a map and look at cable the same way?

If the index is cable subscribers rather than viewers, that's one way to be misled.

In any case, you're right to have reach concerns. The Guru would use the indices you are getting to adjust the cpms of cable and broadcast to copmapre them, but not apply the indices further. Then you can consider gross efficiency or efficiency of reach appropriately given the data you have.


Tuesday, July 13, 2004 #6536
Digital networks offering sight, sound and motion (TV spots)are popping up everywhere. Some are being strung nationwide with "viewership in the 100K's. How would you calculate a fair price for its audience delivery? If cpm, would you pit it against network TV or out of home?

The Media Guru Answers(Friday, July 16, 2004 ):
"Audiences in the 100K's" are pretty small in mass-media terms. The Guru looks at these networks as enhanced out-of-home. They are no more comparable to TV than the audience captured incidentally by people walking past TV's on display in appliance stores, or perhaps TVs in bars. TV research explicitly excludes these audiences.


Wednesday, June 02, 2004 #6506
What is the difference between the circulation and the ratebase of a magazine?

The Media Guru Answers(Sunday, June 06, 2004 ):
Circulation is a simple count of copies sold - hopefully audited. Ratebase is - in effect -a guarantee. It is a circulation figure that becomes the base of ad pricing on a cpm basis. It is usually somewhat less than the latest circulation audit. If copies sold during your schedule fall short, you are entitled to refunds.


Thursday, March 25, 2004 #6434
How important are gross impressions to a media buy (specifically radio or traffic sponsorships)? Wouldn't eff. net reach be more important? How can I better explain the difference between gross impressions and frequency to a client that has these two efficiencies confused as the very same thing?

The Media Guru Answers(Friday, March 26, 2004 ):
Firstly, a media buy must answer the specifications of the plan:

Do plan communication goals specify maximum weight or a focus on frequency over reach?

Frequency is linked to gross impressions but only through other factors and neither is an "efficiency." Budget divided by gross impressions is cpm, which is the classic measure of "efficiency" and no normal cost / frequency ratio with which the Guru is familiar is in use.

Gross impressions takes into account both frequency and reach. 1million gross impressions can be 1 million people each exposed to advertising once or 10,000 people each exposed 100 times. Radio is commonly considered a "frequency medium" but is capable of generating significant reach. Traffic radio is typically a frequency buy. Effective reach, i.e. reach at a specified minimum level of frequency is not the most likley goal for a traffic radio campaign.


Thursday, March 18, 2004 #6425
hi guru, what is the average price per thousand viewers (TV)? would you know where there is information about this price in different countries. ND

The Media Guru Answers(Sunday, March 21, 2004 ):
Start with SQAD. In other countries try googling phrases like "UK spot cpm"


Saturday, January 24, 2004 #6360
What is the best form of advertising can I get information to the most people in the least amount of time, taking costs into consideration?

The Media Guru Answers(Sunday, January 25, 2004 ):
If you mean least amount of time from advertising start and lowest cpm (including production cost), then the answer is outdoor.

If you mean least amount of time from making the decision to advertise, then the answer is probably network radio.


Wednesday, January 07, 2004 #6333
Is there a general cpm for FSIs?

The Media Guru Answers(Friday, January 09, 2004 ):
There is a lot of variation based on size, type, distribution, etc, Try The Newspaper Advertising Association and SmartSource


Wednesday, January 07, 2004 #6332
Where would I find general cpm's for the various mediums.

The Media Guru Answers(Friday, January 09, 2004 ):
Start at AMIC's Ad Data area.


Monday, December 15, 2003 #6314
Dear Guru, Thank you for answering my questions about the cpm ranges. I was surprised to see that b2b cpm was so high. What are the cpm ranges of TV and radio? And what is in your opinion the most cost-effective medium for reaching upscale audiences?

The Media Guru Answers(Sunday, December 21, 2003 ):
True B2B magazines may target very narrow audiences, such as top banking executives or petrolem engineering management. Target Universes can be as few as 5-10,000, so that an audeince of 2,000 is quite resepectable. If the irreducible coast of producing a high quality four-color page is $4,000, cpm is $2,000.

TV and radio can have cpms in the $5 to $25 range depending on target and program selection.

Cost-effective media for the upscale audience are most likely to be print and online. cpm may not be great, but out of pocket is more controlled.


Friday, December 12, 2003 #6308
Dear Guru, What are cpm ranges for business-to-business magazines, business magazines (like Fortune, Forbes), and outdoor billboards? Thank you!

The Media Guru Answers(Sunday, December 14, 2003 ):
Business mags about $20 on total audience, outdoor $2, and B2B can be $200 to $2,000+. All depend on units and B2B category, of course.


Wednesday, December 03, 2003 #6297
I am working for a nonprofit that would like to purchase advertising. I am looking for A18-24 CPPs or cpms for national and spot cable (looking at certain top 100 markets). I am not in an agency so I don't have access to SQAD or any of the other paid resources you mention on the site. I need something that's free, even they're just rough estimates. Thanks!!

The Media Guru Answers(Saturday, December 06, 2003 ):
Try SpotCable


Tuesday, November 18, 2003 #6255
What is the cpm of internet advertising? What is on-line advertising rate?

The Media Guru Answers(Thursday, November 20, 2003 ):
cpm $1-$300. Rate of what?


Thursday, November 13, 2003 #6246
I'm a little confused about your answers to my two questions (#6233 dated November 4th) becuase they seem to contradict eachother. If one household impression is often worth more on Network TV than Cable TV (answer 2), then how can the cpm rate for a Network TV Spot be the same as a Cable TV Spot with the same rating (answer 1)? Is it accepted by the industry to charge more for a Network Spot than a Cable TV Spot even if they are reaching the same amount of people? If so, any insight as to why would be of great help. Thanks in advance!!!!

The Media Guru Answers(Saturday, November 15, 2003 ):
There is a difference between price and value. If two spots are in the same programming, with the same audience size, and same commercial clutter, there is little rational basis for different cpm. Yet, in the real world, because of tradition, marketplace attitudes or negotitation, the difference exists.


Tuesday, November 04, 2003 #6233
When one is buying tv spots during sports programming on various TV Networks, should the cpm rate for :30 spots be set higher for network tv vs. cable tv? In other words, is an impression worth more on network tv than cable tv?

The Media Guru Answers(Sunday, November 09, 2003 ):
No, not if the rating is the same. Yet it often is.


Tuesday, October 28, 2003 #6223
Dear Guru, how do I calculate cpm for digital displays? Let's say there are 20 digital screens in a Costco type store, in different departments. What data do I need and how do I calculate the cpm? What do you think will matter to the potential advertiser: the overall store cpm or per-screen cpm? Thank you.

The Media Guru Answers(Friday, October 31, 2003 ):
What matters to the advertiser is schedule cpm. Calculate based on what is being purchased. Can the advertsier buy just one store? Just one screen? Or is it a nework buy?
Budget ÷ exposures = cpm.


Monday, October 27, 2003 #6221
I have looked for the answer to this question, but don't think it is out there... I want an average CPG for Magazine (cross all types of editorial- just a general value) and Newspaper. If you have seen an acceptable definition for Internet and/or Outdoor, I am all ears... Thank you in advance for any advice you can give!

The Media Guru Answers(Friday, October 31, 2003 ):
Assuming you mean Cost per GRP, this quest is pointless. At a minimum, defining a target demo is is necessary. Even then, averaging across "Juggs" and "New Republic," etc. to get a CPG for women 18-34 is meaningless.

For online or outdoor, the same demographic issues apply and the choices of media are virtually infinite. Nevetheless the Guru imagines that $5 - $8 cpm is realisltic for these latter media, generally.


Wednesday, October 22, 2003 #6215
Why should I buy local cable instead of NETWORK cable? What are the benefits to buying local cable versus NETWORK cable?

The Media Guru Answers(Sunday, October 26, 2003 ):
Generally, network cable will be much more efficient in cpm than local cable. Local cable can be far less expensive, out-of-pocket than national, if you have a small geography in which to advertise. Many local cable systems have their own localized programming (e.g. NY "Channel 1" or Cablevision's "Metro" channels) which can be a good environment for local sales.


Tuesday, October 07, 2003 #6189
Dear Guru, With all due respect, I had written you back in September about a situation I was encountering (below) and received a response that I found extrememly puzzling. You said that my question had to do with copy opposed to media. Guru, copy is a part of media and a vital one at that. You also sent me to a link where you mentioned wear out. I went to the link and didn't find much to answer my question. Being sincere with my next question, why do you spend time to respond in depth to people with ridiculous questions (How do I buy spot cable, what's a cpm, etc) from people who could find the simple answer in a "Media 101" book, while mine is a rationale, functioning question and concern? Product life (packaging influenced) is also part of media. Why blow all of this off? Thank you, CRH Previous question: Dear Guru, 2 Qs: 1.) My client created a TV ad campaign and RIGHT before we launched, a competitor with lower quality/lower price/larger packaging had close to the SAME TV ad campaign! I feel product confusion has happened between my client's premium brand and that of the less expensive "knock-off" product. Do you concur? Any research to back this theory? 2.) Because of my theory, I have advised my client to change ads IMMEDIATELY. They have agreed and we will begin to advertise our OLD ADS starting October. I feel "ad quality restoration" has been achieved through our previous ad's 6 month hiatus. My client and I find that our campaigns last for about 6 months before we experience ad wearout, based on copy and frequency wearout. However, returning to an OLD AD where we are basing campaign results on ad quality restoration, how long will our old ads last, given new ads burnout in 6 months? should we plan on only 3 months since the audience will quickly remember the ads again? Your thoughts? Any research to back this up? Please help! -Media guru grasshopper. The Media Guru Answers(Sunday, September 14, 2003 ): Much of this question is about copy and product, not media. Regarding the wearout issue, there will probably be quicker wearout than with a new ad, but that is hard to quantify.

The Media Guru Answers(Friday, October 10, 2003 ):
1.) Regarding copy vs. media, quite simply, you are wrong.

Advertising is two essential elements:
Copy (creative message or "the Ad," and
media, the vehicles (TV/Radio/Magazines/Outdoor/Online) which deliver the Ad to the audience.

The Guru deals with the planning, buying and analysis of media. This has nothing to do with copy, the advertising message itself except to decide whether the media is suitable to carry the message and communicate effectively with the target audience. Often, a media professional determines for which media copy should be created to best reach or influence the target, but this is far from deciding marketing or message strategy.

2.) The Guru's past responses about wearout include 50+ more or less detailed comments on the topic, which is a subjective concept at best. If you can define wear out, you can measure it.

3.) The Guru's stated purpose is to answer questions about media planning/buying/research. People who aske "media 101" questions didn't take the course, and the Guru would not accomplish much by telling half his users to look at a text book. Occasionally, that might be the only answer, but the Guru preferes to deal directly with media questions.

If you have signed up for a media position but have found yourself making copy decisions, that's a problem. But not a media problem. Luckily for you, AMIC offers a double-your-money-back on the fee for using the Guru, if you are not satisfied with the answers.


Tuesday, September 30, 2003 #6182
Dear Media Guru, In our market we have two companies that offer radio traffic sponsorships. I have been asked by a client to compare the two in order to show which one offers the best exposure and the best "bang for the buck." One company offers live :10 reads on over 19 stations the other offers taped :15s on 9 stations. I know that I can use strata to combine all the stations for each group to get an overall rating average, but I am wondering if I should weight the ratings since these are not :60s. What do you advise? Also, besides, grps, cpp and cpm is there any other data that I should include in my comparision to show the strengths or weaknesses of each group? Thanks! KJG

The Media Guru Answers(Saturday, October 04, 2003 ):
Weighting is reasonable. Do the "live" versions allow last minute changes? If "live" means simple announcer script, but taped meand full production, you need to quantify the difference. It might be more significant than just the length difference.


Monday, September 29, 2003 #6181
How do I buy netowrk cable/national? My experience has only been in spot. Is it based on cpms?

The Media Guru Answers(Saturday, October 04, 2003 ):
Yes, cpm (with guarantees) is a basis. Begin by talking to a few salesmen to get an idea. Ask about "recaps" which are extra spots put into the schedule to assure guarantees will be made, but which may be dropped if ratings track well.


Thursday, September 25, 2003 #6174
whats cpm?

The Media Guru Answers(Sunday, September 28, 2003 ):
Click here to see past Guru responses about cpm.


Monday, September 08, 2003 #6146
Please let me know the industry's projected cpm increases by media type for 2004. Thanks

The Media Guru Answers(Thursday, September 11, 2003 ):
The trade media cover this. See Ad Age and MediaWeek and Media Magazine


Wednesday, August 13, 2003 #6125
What format should a Post Buy Analysis document be set in?

The Media Guru Answers(Sunday, August 17, 2003 ):
The Guru would use a spread sheet, showing columns of
  1. Medium/vehicle
  2. Audience bought
  3. Cost estimate
  4. Audience delivered
  5. Final cost
  6. Planned cpp
  7. Planned vs achieved audience
  8. Planned vs achieved efficiency Index

Depending upon how your plan and buying platform were structured, your "audience" units might be impressions or GRP, your "efficiency" might be cpm or CPP. You might evaluate program by program / magazine by magazine or summarize by dayparts / types or media totals. You might compare to average audience guarantees.

A text overview document should be included.


Wednesday, August 06, 2003 #6113
converting CPPs to cpms? thank you!

The Media Guru Answers(Wednesday, August 06, 2003 ):
Click here to see the Guru on CPP / cpm conversion.


Tuesday, August 05, 2003 #6106
What would be the best way to convince advertisers try digital signage advertising: show them cpm, CPP or other parameters?

The Media Guru Answers(Wednesday, August 06, 2003 ):
Give sales results, such as change in sales of advertised products in the place where advertised. If the signs are in something like stores, this should be fairly easy.


Monday, August 04, 2003 #6103
Dear Guru, Thank you for answering my question about digital signage cpm. You mentioned that it was difficult to give an answer without knowing some missing facts. Let me rephrase the question with more details: 1. There are 2500 locations 1 screen per location 3 minute loop of 18x10 second spots. Assumptions are: 500 visitors per location per day(18hrs). The locations are all part of a convenience store chain of 7/11 type and the screens are located right at the cash register, so there is a great chance that customers waiting in line would be staring at it for at least the length of the loop. How do I calculate my cpm? 2. What are the typical cpms in the industry?

The Media Guru Answers(Wednesday, August 06, 2003 ):
The Guru does not believe that a person usually stands on line at a c-store cashier for as much as three minutes beyond the time during which the customer's attention is on the cashier. Given your added information, the Guru might raise his previous 10% of traffic to as much as 25%.

In-store signage with full video / animation doesn't have "typical cpms" in the Guru's experience. A static sign in such a store's front window might cost $300 per month, and get tem times as much street traffic as in-store traffic. This would be a cpm of around $2. The animation might make a doubling of cpm worth while


Friday, August 01, 2003 #6099
Dear Guru, I have a cpm calculation Question for Digital Signage. 2500 locations 1 screen per location 3 minute loop of 18 10 second spots Assumptions are: 500 visitors per location per day(18hrs) How do I calculate my cpm?

The Media Guru Answers(Saturday, August 02, 2003 ):
A missing fact is the likelihood of a visitor watching the whole loop, or seeing it multiple times. If you assume each visitor sees the whole loop, once, your daily audience 1,250,000 (2500 x 500).

But the Guru sees this audience as unlikley unless the screen is at a cah register or somewhere with no distractions and a reason to stand still for 3 or more minutes.

Without knowing the enviroment of the locations (small store or busy street), perhaps 10% of the above, calculated audience is closer to reality.


Thursday, July 03, 2003 #6059
how do you convert CPC to cpm?

The Media Guru Answers(Thursday, July 03, 2003 ):
Assuming that by "CPC" you mean "cost per click" then you need CTR (click thru rate) as another variable.

CTR = total clicks ÷ total ad impressions (ad serves).

CPC times CTR times 1000 = cpm


Saturday, June 28, 2003 #6048
Hi Guru, following my question # 6037, my manager asked me to prepare a report on cpm of my brand from 2002 to YTD, how did it perform? What is my remark, my reconmendation. I have mentioned following factors in my report : - Total cpm of my brand compared to competitor via month. - cpm by market ( with more than one channel in each market) via month comparison - cpm by timeslot in each channel comparison. Is there any other factors that to your view, I need to consider in my report? It seems that you only work for this website by the end of week ? Since I have been waiting for your reply from beginning of this week. Sorry to chase you again but please please reply soon, I have to submit the report by this monday. Thanks very much for your helping me so far.

The Media Guru Answers(Saturday, June 28, 2003 ):
It seems you have already gone well beyond any realistically useful cpm factors. Sorry about the timing. Remember the Guru always offers a double-your-money-back guarantee on his responses to your queries.


Friday, June 27, 2003 #6047
I have been approached to be the title sponsor of a new sports talk radio show. The show will be on over 200 stations across the U.S. and Canada. With no ratings or history, how do I determine what is a fair price to pay for the sponsorship?

The Media Guru Answers(Monday, June 30, 2003 ):
The Guru would start from the assumption that a sponsorship which reaches the target and has added impact for your marketing is worth some cpm premium.

Then you need to know what cpm you would pay for ordinary, targeted programming.

Finally, you need to estimate the audience delivery against which to apply the cpm and premium factors. You can get a guarantee from the vendor, if the program will be rated. Otherwise, examine the average ratings of similar programs in similar circumstances.


Wednesday, June 25, 2003 #6037
Hi Gure, As I media planner, I have asked to prepare a report on cpm of my brands. Please advise me what factors should I mention in my report. Please do reply asap. Thanks.

The Media Guru Answers(Friday, June 27, 2003 ):
The Guru doesn't immediately understand why you would go beyond listing the specific media and the cpm for the brand's target for each. Perhaps you need to clarify the question.


Monday, June 23, 2003 #6030
Dear Guru,As a media planner, what should I care cpm for? Since I need your info very urgent, pls reply soon. Appreciate your help.

The Media Guru Answers(Friday, June 27, 2003 ):
Lower cpm means more impressions per dollar (or whatever currency unit you use). Planners need to consider this in selecting media and vehicles.


Saturday, June 21, 2003 #6029
Dear Guru, Please help me to clarify these issues : - What CPT and cpm stand for ? - Are the formulas to calculate them as follows : CPT=(Costx1000)/Impression cpm=(Costx1000)/Reach(000) - Impression and Reach in thousand are not the same,are they? Impression include duplication but the reach in thousand does not. Impression = Reach(000)x OTS? - Therefore, there must be different b/w CPT & cpm. But it seems that most books consider them as the same. - GRP = OTS x Reach (%)or GRP = Frequency x Reach (%)? - Does OTS have some meaning of impression? Since these issue confuse me now so much and I current get a stuck in preparing a report. Pls do reply me as soon as possible. Many thanks.

The Media Guru Answers(Saturday, June 21, 2003 ):
You have tangled up several ideas and defintions. In different countries, some of these terms are used differently or not used. For example, in the Guru's base of the U.S., we do not use "opportunities to see (OTS)," and though you may be in Thailand, the Guru will not assume so.

cpm stands for cost per thousand impressions; the "M" is the Roman numeral M, meaning one thousand. CPT is not familiar in the US, but is probably another indicator of cost per thousand impressions.

The Guru most often sees "OTS" used as equivalent to "impressions" but sometimes as a reference to average frequency, so here are the simplest definitions.

"Impressions" are the number of advertising exposures, i.e. the number of different people exposed to advertising times the average number of occasions on which they are exposed. Thus, duplication is included.

"number of different people exposed" is equivalent to "reach."

"Number of occasions on which they are exposed" is equivalent to "frequency."

cpm is cost of advertising divided by impressions in thousands. Reach is not involved.

When reach is expressed as a percentage of a target group, then reach x frequency = GRP.


Monday, May 12, 2003 #5966
Dear Guru, When we calculate cpm of a specific TV channel (not specific program), shouldn't we take the average/standard rate of a 30 seconds primetime spot? One of our clients opposed to that and said that I should have taken the highest rate available to calculate i.e. rate of spot in the most expensive program available in that particular channel. And my boss was also agreeable to that. I was sort of cornered that day. Pls. help me finding the correct way to calculate cpm for TV Channels. A. M. Toolie

The Media Guru Answers(Monday, May 12, 2003 ):
If you are looking for a representative cpm to give a picture of the channel and its appropriateness, your way of averaging is right. The Guru doesn't see the use of picking a single program whether it's the highest rated, best cpm or any other extreme, if your ultimate goal is buying schedules.


Friday, February 28, 2003 #5861
Hi Guru, Our company is planning to launch an advertising vehicle whereby clients can have their messages inserted into e-mails that are distributed to the databases of radio & TV stations. Do you have any information on what an appropriate cpm would be to charge advertisers and to pay stations for this targeted delivery? Any information would be appreciated.

The Media Guru Answers(Sunday, March 02, 2003 ):
Sounds like spam to the Guru; the Guru does not support spamming.


Monday, February 17, 2003 #5843
Hello Media Guru... I am working on a account which utilizes a large amount of local print. The advertiser's brand only exists in a handful of markets, and is highly upscale, making local print media a good fit (this is my belief given strengths and weaknesses of local print vs. other media forms). Additionally, their media budgets are very limited, making other high "out-of-pocket" media unaffordable. With local print, reliable research about most publications is limited, as most books are not measured by trusted syndicated research sources. Additionally, it seems that many local books cover similar audience segments, making it very difficult for planners to differentiate between local magazines, and select the most appropriate publication. Finally, unless a planner is planning for a market they live in, they don't have strong "local knowledge" that would help make decisions easier. Do you have any suggestions for local print planners? How should local books be compared? What are the main factors you would use to make recommendations for this medium? We have used circulation, paid vs. non paid readership, editorial synergy (seems subjective in some cases), cpm, added value, positioning, and physical quality of the book to name a few... However, we rarely feel very confident in our recommendations. Any thoughts would be appreciated. Thanks.

The Media Guru Answers(Sunday, February 23, 2003 ):
When all hard data fails, and local knowledge is needed, one surrogate method is accomplished by examining a couple of issues of each publication in a market. If you see one local BMW or Mercedes or Lexus dealer or a top-end jeweler or high end audio dealer is a consistent advertser in one of the local media, that is probably a good indication of local opinion and upscale results.


Tuesday, February 11, 2003 #5824
An increasing number of tri-vision billboards are becoming available in metro areas. Can one assume that a tri-vision billboard would be less desirable than a static board with a similar DEC/showing, as it would yield only 1/3 of the total impressions? Is there research showing that people are more likely to look at a tri-vision board as it is "active" and eye-catching. If I were to make a decision based on cpms, would I have to cut the DEC by 2/3 to get "apples to apples" impressions? What is your opinion of tri-vision vs. static billboards?

The Media Guru Answers(Monday, February 17, 2003 ):
The Guru agrees about division of the impressions. One would have to examine the length of the display-change cycle versus the duration of exposure for the passing traffic to support attention getting benefits.

Top-line, the Guru thinks the advantage is more for the display company than the advertiser.


Tuesday, January 14, 2003 #5732
I have heard comments from media agencies that emphasize quality over cost for TV spots. However I am a little skeptical, especially when their compensations are tied directly with the budget. So I would like to ask you a few questions to help me get a better understanding. 1) Does a good relationship between the director of a TV station vendor and the media buyer strongly affect the quality of TV ads (in terms of POD position, etc.)? 2) Does buying above the SQAD mean a bad buy in comparison to others who purchased below the SQAD? 3) Are there ways to measure (quantitatively) the performance of a media buyer? Your opinion would be highly valued. Thanks.

The Media Guru Answers(Saturday, January 18, 2003 ):
The Guru comments:
  1. In any buying / selling situation, a good relationship between the parties is likely to improve the deal as perceived by both sides. This will affect product "quality" for the buyer and quantity sold for the seller.
  2. Buying above SQAD is a pretty reliable indicator of having spent too much.
  3. SQAD is more of a benchmark than an absolute. Once some basics are set, you can tell the buyer has gone wrong if his/her costs go up when SQAD costs trend down, or go up much more than SQAD does. Likewise, a buyer whose costs go down more than SQAD's costs do has made good deals.

A media buyer needs to be given explicit goals against which to be measured. There are no absolute quality indicators of a buy, whether you look at cost, cpm, reach, rating, pod position, etc, unless these goals are set. Undirected, a buyer will probably go for lowest cpm/cpp or his own interpretation of best reach. If you wanted high ratings or heavy frequency instead and didn't make that clear up front, it is not the buyer's performance error when you don't get your secret desires. If you did give specifications and the buyer went a different way or didn't meet goals, then that's bad performance.


Sunday, December 22, 2002 #5702
An easy one for the Guru-- What is the approximate prime time cpm differential between traditional network TV and network cable TV? Thanks.

The Media Guru Answers(Monday, December 23, 2002 ):
See SQAD. Because uses of cable are different, indices for dayparts, demos and content index variably over great ranges.


Wednesday, December 18, 2002 #5694
Hi, I would like to learn more on daypart online campaigns offered by Yahoo! Is it sold on cpm basis or flat-fee ? Does it give exclusivity to the advertiser ?

The Media Guru Answers(Saturday, December 21, 2002 ):
Ask Yahoo at (617) 305-6032.


Saturday, December 07, 2002 #5663
how much does direct mail cost?

The Media Guru Answers(Sunday, December 08, 2002 ):
There are three chief costs for direct mail:
  • the mailing list
  • the piece itself
  • mailing

The list cost, usually expressed as cpm, can range greatly, depending on how targeted it is. "Occupants" in a piece of geography are cheap, it's just existing addresses. Lists can get quite expensive, for example "buyers of diamonds over 2 carats living within a 3 mile radius of Chain X locations" might cost hundreds of dollars per thousand. Typically, lists are rented for one-time use. If you are sending to a list of your own customers, then there is no cost at this stage.

Production includes the creative work, buying the paper and printing. The size and quality are key variables, A simple post card in large quantities might average out to a few cents per thousand. Other, complex pieces could be $5 each.

Mailing covers applying the address, postage and physical delivery to the post office, also known collectively as "lettershop services". Weight is the big variable here. Companies like Infinite Media broker lists and provide lettershop services.


Tuesday, November 12, 2002 #5606
Hi guru, could you please tell me how to calculate "media inflation" and what factors will affect "media inflation"?

The Media Guru Answers(Tuesday, November 12, 2002 ):
Media inflation is not a standard term. Generally it should mean the rate of increase in media costs, probably best expressed as the year-on-year change in efficiency, i.e. CPP or cpm.

Based on this, the factors are change in media unit cost and change in media unit average audience.


Monday, October 07, 2002 #5550
I am launching a new polish language 24 hrs ethnic channel in USA, Which pricing method for the airtime ratecard would be the most appriopriate (assuming that such a channel of 50-100.000 subscribers would not be "visible" in any audience measurement panel?). What level of cpm is used when pricing ethnic communities??

The Media Guru Answers(Sunday, October 13, 2002 ):
Generally, ethnic broadcast cpms are a bit lower than general market cpms for the same media type, using Hispanic as model. This holds true even in cases where Spanish language stations are tops in their time periods, which sometimes occurs in LA, NY and Miami.

You will need to begin prices based on covering your costs. If, as you say, you will not have any audience measurements, discussion of cpm is irrelevant, anyway. With 100,000 subscribers, it will not be uncommon to have only 1000 viewing most of the time. If $20 cpm is what others get, that means $20 is a high price for you spots on a cpm basis. Your best pricing model might be the International Channel.


Thursday, October 03, 2002 #5544
I have a client that is trying to determine the value of some editorial coverage they received on some of the national networks. I see that cpm's are available on the website. As our agency does not purchase any national TV, we have no access to audience figures. Is there a place that I can go to find this information. Thank you.

The Media Guru Answers(Sunday, October 06, 2002 ):
Companies that produce audience measurement are in the business of selling their results. Only very limited data is available for publicity purposes, i.e. publication by the trade media.

One such source is Radio Online


Thursday, October 03, 2002 #5542
Dear Guru, We are a company that specializes in large scale video displays, with our focus on the indoor/outdoor LED screen market. We currently provide our services for events and trade shows. We are developing advertising solutions for companies utilizing this LED Screen Technology. What kind of formula should we use to sell airtime? i.e 30-second spot an hour for seven days between the event hours....say 9am-8pm. There are ten sponsors of this event. The event will draw approximately 50,000 people over the seven days. Any help would be greatly appreciated. Regards, Darren

The Media Guru Answers(Sunday, October 06, 2002 ):
Start with outdoor as a model. An average cpm might be $5.00. Perhaps that could double if you have full sound with animation. Perhaps it could double again if the event audience is highly desirable to the advertiser. That would make the price $1000 over the course of the event. Can you also charge for frequency, i.e. once per hour? Remember we just based the audience on the whole event. The audience of a show open 36 hours over three days will average perhaps 2-3000 at a time. Can they all see every commercial? Think about how long each visitor stays and how often they would pay attention to the commercial. An average frequency of two seems generous.


Friday, September 06, 2002 #5500
I am seeking a source that can provide projected cpm's for various media for 2003. Thank you for your help.

The Media Guru Answers(Sunday, September 08, 2002 ):
See SQAD and trade articles in Ad Age or Media Magazine


Tuesday, June 25, 2002 #5378
Have you heard of anyone selling advertising on CD/DVD labels or the liners of CD's/DVD's? I have an opportunity to buy such and would like to know rate basis and rates, if there are any.

The Media Guru Answers(Sunday, June 30, 2002 ):
The Guru hasn't heard of it. Sounds comparable to outdoor, unless the product is closely linked by topic to the cd/dvd contents. Start with outdoor cpms, in the under $5 range.


Thursday, June 06, 2002 #5329
Hello. I don't have access to pricing, so I am hoping you can help me. In order of most expensive cpm to cheapest cpm, how would you rank the following media (assume national activity, including local placements)? Event Sponsorship, TV Sponsorship, OOH, Radio (combo national and local campaign), Newspaper, Magazine & Online. Thanks.

The Media Guru Answers(Saturday, June 08, 2002 ):
Within each category you list, there is enormous variation in cpm, more than 10:1, so that specific selections could change the rankings. Also "national activity including local placements" is confusing and again changes the range. Different demographics change the realtionships, too. And different units also are important. But in general, the Guru would rank these from highest to lowest cpm as follows:
  1. Events (not media)
  2. Magazines
  3. Newspapers
  4. TV
  5. Online
  6. Radio
  7. OOH
OOH will be lowest by a wide margin.


Thursday, May 02, 2002 #5265
What are the most scientific ways of measuring media inflation. How do we isolate impact of fragmentation and cost inflation in an exercise of this nature. Can u illustrate this with an example for a developing country with low levels of tv penetration

The Media Guru Answers(Sunday, May 05, 2002 ):
The Guru suspects that you mean something other than "scientific." Media inflation is simply the increase in cost per unit audience (cpm or cpp) over time. There are just the two, hard-number elements, audience (e.g. rating) and cost.

One may track the two elements separately, graphing change in average rating (largely due to fragmentation), and change in cost per unit. The difference in slope of these two lines isolates the factors. The Guru does not have readily at hand a multi year track of these two factors for any developing country. In a developing country, the growth in media usage might offset fragmentation for several early years.


Saturday, April 27, 2002 #5252
what is the total cost of space or times for a 30 second radio spot in ny, and for an internet web site?

The Media Guru Answers(Monday, April 29, 2002 ):
For radio, consult SQAD. Local internet costs generally range around $10 to $20 cost per thousand impressions.


Saturday, April 20, 2002 #5234
How much, in general, does internet advertising cost? Specifically, banners and intersitials. Also, how much is it, approximately, to create a web-site.

The Media Guru Answers(Sunday, April 21, 2002 ):
Currently the range is from a few cents per click to $200 per thousand impressions. $10-15 cpm might be an average for traditional advertisers on major sites.

The range to create web sites is even greater, depending on features. A one page display of good can be homemade for next to nothing using just your own time. A complex, ecommerce site, with audieo and video samples could cost upwards of $1 million to build and maintain.


Friday, April 12, 2002 #5220
Any comparative cpm data on alternative media like, Taxi tops, park benches, shop carts, subway boards, in-store, etc.

The Media Guru Answers(Monday, April 15, 2002 ):
Generally, the Guru believes these media are available locally and may not be similarly priced for the same type, from one place to the next. Start with a major vendor like TDI and begin to compile your own data.


Thursday, April 11, 2002 #5219
My client is a Real Estate company with development in Virginia. One such community lends to the homosexual buyer. We didn't want to use the Washington Blade as it isn't qualified real estate traffic. From what I understand Simmons corrdinated a study in 1996 toward the gay & lesbian lifestyle. My question is, what local or national publications, perferably with established real estate section, do homesexual adults patronize.? Please keep in mind if the pub is national, we would like to keep the cpm at a low as the client only has two communities that lend itself to this lifestyle.

The Media Guru Answers(Monday, April 15, 2002 ):
Obviously, you need research regarding media preferences of the gay community. Contact Simmons and some of the major gay media, such as The Advocate, for guidance.


Thursday, March 28, 2002 #5179
What is the average cable network cpm?

The Media Guru Answers(Saturday, March 30, 2002 ):
You need to specify a demographic, at least. You may find cost guides at AdWeek


Friday, March 22, 2002 #5168
I am trying to find radio cpm/CPP rates by radio station in the Los Angeles area. I have looked at the SQAD data, and it only aggregates the rates for all of LA, and not by station.

The Media Guru Answers(Sunday, March 24, 2002 ):
Market guides, like SQAD, are useful are practical because they follow predictable, broad trends and reflect surveys of recent, actual activity. However, individual stations experience much more variation in audience from quarter to quarter and are much more subject to marketplace forces, varying budgets and inventory pressures. In a market like LA, it is far more difficult than it's worth to track realistic, individual "cost per ___" prices for the many possible demographics.

The only practical solution is to contact and negotiate with the smaller group of stations with which you might actually do business and talk about the one or two demographics in question.

In most cases, you will find that Katz or Interep handle enough stations that one or two contacts cover your needs.


Friday, March 22, 2002 #5167
Do you know of a primer for understanding radio advertising and how it is purchased? I am trying to learn about terminology and the dynamics of the industry such as the different pricing methods (cpm/CPP, Direct Response, etc).

The Media Guru Answers(Sunday, March 24, 2002 ):
This is a fairly narrow topic. Most likley the major rep firms, like Katz or Interep can provide useful guides.


Thursday, March 21, 2002 #5163
In developed media markets, media buying moves from FCT at flat rates (Free Commercial Time- secondages available for airing commercials) to cost per rating points to ? - cost per million?

The Media Guru Answers(Thursday, March 21, 2002 ):
The Guru doesn't quite follow your premises

Let us assume that the US is the epitome of "developed media markets."

There is no process moving from free to CPP to cost per million (or cost per thousand). And how would the term "flat rate" even relate to "free?"

Or did the Guru not understand your question?


Thursday, February 07, 2002 #5069
Guru - I need to price the sale of advertising on Wireless phones? Are there any benchmarks for the service when X number of subscribers have agreed to recieve X number of messages per day? Thanks for any and all help!

The Media Guru Answers(Sunday, February 10, 2002 ):
Pricing sould be based on cost per thousand messages delivered. Other advertising is priced from under $1 to over $200 per thousand depending on the audience's desirability to the advertiser or the difficulty of reaching it.


Wednesday, January 23, 2002 #5030
Hi Mr Guru. Just wondering : in the basic (reachxfrequency)xcpm/1000 formula, I have a question about reach. Are we talking about the number of people who see the ad, or who might see the ad ? E.g. the 500,000 people who drive by a billboard every week, but who don't necessarily see it. Thanks a lot.

The Media Guru Answers(Thursday, January 31, 2002 ):
There is a term - "opportunity to see" - more commonly used in Europe and probably more descriptive than our own "impressions." Each research measurement has a standard for inclusion in the reported audience. For outdoor it may be something like: the number of cars passing a billboard each day time an average of 1.7 passengers per car. In magazine, the number of persons who say they looked into the most recent issue. There are arguements about why each overstates the numbers actually exposed to the ad. However, reach and frequency systems are usually built to deal with the reported audiences fed to them. Most sytems have allowances to adjust inputs or results based on attentiveness, noting or other refinements.


Thursday, January 10, 2002 #4994
When calculating the cpm for magazine advertising there is a formua to compensate between a full page cost and a partial page cost. It has to do with readership differences between the sizes of ads. the second part of my question is how do I compare cost efficiency in terms of cpm between magazine and television broadcast.

The Media Guru Answers(Monday, January 14, 2002 ):
cpm = Ad Cost ÷ audience (in 000)
If you wish to adjust this calculation using Starch or other adjustments based on relative readership it's easy:

1. Use the appropriate cost for the unit.
2. Create the ratio of readership scores of the; two units, for example if a full page has a score of 60 and a half page has a score of 48, the ratio is 48 ÷ 60 or 0.80
3. Multiply the actual audience by this ratio.

4. Divide this adjusted audience into the correct cost for the page unit.


Sunday, January 06, 2002 #4981
I am trying to compare cpm between print and radio. The demo is Adults 18-54. I have the readership for the demo for the MSA for the print. I have the gross impressions for the radio and have calculated a cpm for all (both the print and radio). Is this correct? Can I compare readership against GI's?

The Media Guru Answers(Sunday, January 06, 2002 ):
Yes, readership is equivalent to impressions.


Thursday, January 03, 2002 #4973
Can you please explain the difference between TV network and spot buying. What is the equivalize and non-equivalize concept. Why is it used in network buying and not in spot(units are not equivalized). Also can you please explain the reweight concept. How do you come up with reweight cpm. Why can you just do a straight year cpm comparison.

The Media Guru Answers(Friday, January 04, 2002 ):
Click here to see past Guru responses about equivalizing. "Why use it?" is a good question regardless of the network versus spot element. The use of equivalence is an artifact of mass buying by corporation wherein large numbers of :15's and :30s are bought but need to be readily comparable. In spot, this type of buying is less common. Also, network :15s are almost alwasy priced at 50% of :30's making equivalence simple. In spot the ratio is usually higher, and inconsistent.

In network, the geography for CPP / cpm is consistent, so that CPP and cpm can be converted back and forth based on simple multiplication or divsion by the relevant demographic universe. In spot however, while CPP is based on the defined DMA (or occasionally metro) geography, cpm is based on impressions generated anywhere, so there is no simple mathematical relationship.

For other network buying concepts use the Go to the Guru Archives Search Engine.


Friday, December 21, 2001 #4961
Guru Buddy: Is there a source for ad rates for Internet-only radio stations? I'm trying to determine what typical cpms are for local and national ads. Even a range would help.

The Media Guru Answers(Friday, December 21, 2001 ):
Check RealNetworks and StreamingMediaWorld.


Thursday, December 06, 2001 #4931
radio cpm

The Media Guru Answers(Thursday, December 06, 2001 ):
SQAD


Wednesday, December 05, 2001 #4925
Dear Guru - I'm working on a small trade magazine plan. When I evaluate the magazines, I set up a spread sheet and plug in: Gross P4C 1x rate, cirulation, cpm. Then i go through the BPA and pick out the target circ and calulate that cpm. After that, I put in % qual. 1 year, percent personal request and last, paid vs. non paid. Each number gets indexed( lowest cpm gets 100 etc).Then the publications get ranked. Editorially, they all look alike. Is there a better way of evaluating trade pubs in a category. This fabulous category is "water supply & sewage disposal". Thanks.

The Media Guru Answers(Wednesday, December 05, 2001 ):
You might try to figure out which one is most authoritative. That is if they all have the saem content and audience, which one do the readers look to for best / mot reliable information.


Tuesday, December 04, 2001 #4922
Hi Guru, Could you please tell me what is the difference between Full Page cpm and cpm in print media? Ther reason I ask is that some agencies quote FP cpm and some - just cpm. Thank you.

The Media Guru Answers(Wednesday, December 05, 2001 ):
A cpm must refer to a specific ad unit. In print, full page is assumed if there is no specific mentioned.


Wednesday, November 28, 2001 #4915
Dear Guru, 1)Where can I find cpm comparison data for local community newspapers versus dailies? 2) What is considered to be a competitive cpm for local community newspapers? 3) What do ad placement agencies charge for their work? Thank you very much

The Media Guru Answers(Thursday, November 29, 2001 ):
Until recently, there were a handful of sites that offered print rate data, such as Media Passage, Media SpaceBank, Newspaper SpaceBank, etc., but they all seem to have fallen by the wayside.

The Guru does not think that the daily vs community newspaper decision is primarily going to be base don cpm. Usually dailies cover a wider area while community papers are just that, focused on smaller geographies. Out-of-pocket cost is then the key difference.


Wednesday, November 21, 2001 #4902
We are trying to figure out a gross cpm for a client who we have given a net cpm to. She is looking to compare the two. (I am not speaking in terms of gross/net rate -agency 15%) Here is a scenario that I am trying to figure out: By publication - 439,000 target audience $51,000 FP rate = $116 net cpm. How would we go about getting the gross cpm to compare to this? From a total plan standpoint, we also presented net cpms and the client is looking for a gross cpm for comparison. How exactly would I go about figuring this out?

The Media Guru Answers(Wednesday, November 21, 2001 ):
The Guru does not understand your question. The common definition of the terms gross rate / net rate referes to the difference between a rate including agency commission (traditionally 15%) and a rate not including this commission. This definition would yield a $135.29 gross cpm for $116 net. The only reason the gross would be different would be if there was some other understanding about agency commission / compensation.

The formula to calculate gross cpm, when commission is 15% is:
net cpm ÷ (1 - 0.15).


Tuesday, November 13, 2001 #4883
hi, i've been dealing with an ad agency and fighting for a concept event with a big cost, part of the event is a promotion to require a proof of purchase in order to join. They say they need to know the media implications of this, they need to measure if it will increase sales, and if the media planning is effective. I'm just curious, how do i make an effective media plan to justify that the cost of the event is just minimal also plus the media mileages they get from posters, streamers, and merchandizing.

The Media Guru Answers(Wednesday, November 14, 2001 ):
The simplest to calculate and for them to understand is to determine the number of exposures of all the elements and then put a value on these exposures using a cpm the agency experiences in some cmparable medium, such as out-of-home.


Monday, November 05, 2001 #4861
My client is requesting a media cost idex in order to compare costs of advertising in one market vs. markets where our competition is. I was puling CPPs for each market. How do I create and index for them. For example: If New Orleans's CPP is $76 and Denvers is $282, and Baltimore is $214, the client wants me to use N.O. as 100 on the index and index the rest against it. How do I do this?

The Media Guru Answers(Monday, November 05, 2001 ):
The sensible way to do this is by comparing cpm, not cpp. To create an index divide each market's cpm by the cpm in New Orleans. Move the decimal 2 places to the right.


Friday, October 19, 2001 #4807
Hi Guru could you please tell me the correct method of calculating cpm for consumer magazines - how would one account for the pass along readers ?

The Media Guru Answers(Friday, October 19, 2001 ):
If you have audience measured by one of the standard syndicated services, such as MRI, Simmons or The Mendelsohn Media Research Affluent Study, that audience number includes pass-along. Most leading consumer magazines can provide this number. Others should have some sort of research on their pass-along. See AMIC's Ad Data area.


Tuesday, October 16, 2001 #4799
Media Guru: I am looking for information regarding the average cpm for direct e-mail compared to direct mail. Thanks.

The Media Guru Answers(Tuesday, October 16, 2001 ):
The Guru does not in any way support commercial bulk email. SPAM is repugnant and despite any claims to the contrary, so-called "permission-based email" appears to be bogus. The costs of direct email are either the physical transmission, which is negligible or the cost of the list. The Guru believes purchased lists mean SPAM. Direct email should be limited to your own customer or request lists, hence no cost will be involved.


Thursday, October 11, 2001 #4782
can you show me some of the formulas developed to measure cost per thousand, and other media planning formulas?

The Media Guru Answers(Monday, October 15, 2001 ):
Click here to see Guru discussion of media formulas.


Thursday, September 27, 2001 #4739
Hi, i want to know about cpm (Cost Per Impression) Thank's

The Media Guru Answers(Thursday, September 27, 2001 ):
For examples, see AMIC's Ad Data area.


Friday, September 14, 2001 #4717
Media Guru, First thanks for a great service - I am an experienced broadcast and interactive services executive and I continued to learn new things from this site. Question - I am helping roll-out a new service based on kiosks with high speed Internet connection which combines Point of Sale display, on screen advertising (both full screen and interactive) and consumer data collection, analysis and report generation. How best to develop wholesale costs for the media space? I'm assuming it is most like alternative out of home and should be looked at as a cross between outdoor, interactive and tradtional spot. Any ideas where to start or other media that might be comparable for analysis? Thanks and keep up the great work.

The Media Guru Answers(Saturday, September 15, 2001 ):
Thank you for the kind words.

The Guru isn't sure he understands your term "wholesale" in this context. However, based on outdoor and current generic internet pricing, a cpm well under $5 is reasonable.

You will find some media cost data in AMIC's Ad Data area.


Monday, July 30, 2001 #4615
How do I decide how much I should pay for pay per click services? Is there an industry standard? We have been offered $.35 per click.

The Media Guru Answers(Monday, July 30, 2001 ):
The Guru doesn't believe in selling cost-per-click, since that makes the web site responsible for the quality of the advertiser's copy.

Nevertheless, if you assume there will be about three clicks per thousand impressions, then $0.35 per click equates to $1.05 cpm based on impressions. On the Guru's web site, he would not be interested in business at this price.


Tuesday, July 24, 2001 #4605
Dear MG, Can you please suggest a resource where I can find average cpm for each medium (ie average cpm across the board for all newspapers is $x, average for all internet is $x, etc)? I found this data on amic.com, but it was from 1996. Thank you!

The Media Guru Answers(Tuesday, July 24, 2001 ):
In additon to AMIC's Ad Data area, see SQAD, Ad Resource (overstated) and The Newspaper Advertising Association. Your biggest probelm, beside the bottom falling out of internet rates since whatever was posted, is the lack of standard deographics to compare.


Friday, July 13, 2001 #4576
Dear Guru, I have enjoyed your past insights a lot, and I wonder if there is an answer to my problem as weel. I am wondering if there are some measurement that indicates the propbablility of an ad being seen. For example, when a magazine quotes a cpm it is based on how many people that have the opportunity to see an ad. Is there a measurement or an industry standard ratio of cpm verus how many people that are likely to actually see/register the ad when they read the magazine (or some other media). Thanks.

The Media Guru Answers(Friday, July 13, 2001 ):
Various measurs of this likelihood of ads being seen and/or remembered are online at The Magazine Publishers' Association, for example The Magazine Handbook.


Tuesday, July 10, 2001 #4567
I'm trying to buy network radio advertising. What is the current range of cpm and CPP averages for network radio at this time? Also, where can I find information on current rates for network radio and syndicated radio programs so I can effectively comparison shop?

The Media Guru Answers(Tuesday, July 17, 2001 ):
There are few enough suppliers that a few calls will do the trick. You will need to be specific about your demographic target.

Start with ABC, Westwood One / CBS, Radio Unica, Premiere Network and Sheridan (212-883-2110).


Wednesday, June 27, 2001 #4525
What is a Media Buyer, and what does a Media buyer do? What type of degree or level of education do you need to become one? What is a SQAD report?

The Media Guru Answers(Wednesday, June 27, 2001 ):
A media buyer is a negotiator, employed by an advertiser or its agency, acting on behalf of the advertiser to secure media space or time from media vendors, such as publishers and station owners.

There are no specific educational requirements, but most have a bacelor's degree if hired at entry level.

SQAD provides media cost-per-rating-point and cost-per-thousand audience estimates, as a guide for media planning and buying.


Wednesday, June 20, 2001 #4505
I am attempting to project advertising revenues for a media company who will have approximately 600k to 700k subscribers on Digital Cable. Do you have an estimate of the advertising sales per spot ad per subscriber? I have heard a rate of 1 cent per sub per spot ad. Is this reasonable and realistic? What references are available to check this rate? Thanks Michael Jordan

The Media Guru Answers(Friday, June 22, 2001 ):
One cent per sub, or $10 cost per thousand households is about right, based on spot TV cost estimates published bySQAD. This is actually based on Audience, not suscribers. Advertisers are interested in how many see their commercials, not how many are able to see them if they choose to. Viewing to any given ad-supported cable channel at a point in time averages less than 1% of subscribers. These are the ESPN, CNN, Fishing Channel, and Animal Planet sort, not the HBO type (pay cable) or broadcast networks.

If an ad can charge 1 cent per actual viewing household, then its price might be 1 cent per 100 subscribers, or less.


Friday, June 15, 2001 #4491
Where can I go to find (national) CPPs and cpms for Lifetime and Food cable networks? I'm looking for detailed info to estimate specific dayparts/programs/seasons.

The Media Guru Answers(Sunday, June 17, 2001 ):
You will have to contact each network for such specific information.


Tuesday, June 12, 2001 #4475
Where can I find cpm information on for all media platforms?

The Media Guru Answers(Saturday, June 16, 2001 ):
SQAD offers Broadcast cpm. MRI+ offers magazine data. Ad Resource has some Internet cpm data. Try MediaPassage for newspaper. The Guru has not seen such data for outdoor.


Tuesday, June 12, 2001 #4473
Is cpm a valid measurement for efficiency of media across all platforms?

The Media Guru Answers(Saturday, June 16, 2001 ):
"Efficiency" is defined by cpm. Perhaps you have some other terms in mind.


Monday, June 11, 2001 #4471
Where would I find overall, all dayparts, CPP and cpm for network stations in a specific DMA?

The Media Guru Answers(Saturday, June 16, 2001 ):
For that level of specifics contact station reps.


Thursday, June 07, 2001 #4463
I have 320 Commercial Units available for sale at a rate of $4.00 cpm. National Cable TV, Sports, 70% Male. Who can I contact that is a buyer of media "wholesale" or a media re-seller? Thanks, Konrad.

The Media Guru Answers(Thursday, June 07, 2001 ):
Try our MediaQuote section.


Monday, May 21, 2001 #4418
I am just starting a job dealing with Direct Response Television Advertising. Seeing that traditional TV media rates are valued based on ratings points. How do stations develop their rates for Direct Response Television? Is cost per thousand a measure which can be used in Direct Response Television analysis or is the measure just Cost per Order? I have a client which swears that I need to give him in depth cost per thousand numbers but our agency owner says that is ludicrous in DRTV. Thanks for any info.

The Media Guru Answers(Tuesday, May 22, 2001 ):
cost per thousand (cpm) is mereley the cost of a spot divided by its audience. All station inventory is essentially priced at least partially based on a cost/audience ratio, which determines the value of the spot to the station.

However, the value to a DR advertiser is based on cost per response, whether that is measured in inquiries or orders. Most DR practicioners have learned that there is little relationship between audience size and response. It is not unusual to get more orders from a low-rated late fringe program than a prime time program.

So, while it is possible to calculate cpm in a DR buy, and inherently harmless to report cpms, it would be wrong to judge a buy on this standard. If your owner objects to the waste of your time and the client's, he is justified in his objections.


Saturday, May 12, 2001 #4389
What would be an acceptable rate to charge for TV advertising during a horse racing simulcast? The signal reaches 255 betting locations including racetracks, casinos, and off track betting parlors.

The Media Guru Answers(Saturday, May 12, 2001 ):
You need to know the audience size. If you have advertisers who particularly want to reach bettors, perhaps a cost per thousand of $30-$40 could be charged. If the average audience per location, per commercial is 10 people or a total of 2550 people, then the cost per ad unit would be about $75 to $100. If the audience is bigger, then a proportionately higher rate is reasonable.


Thursday, May 10, 2001 #4384
is there a resource for finding average media rates CPP,cpm for electronic media in the charlotte market that does not charge a fee

The Media Guru Answers(Thursday, May 10, 2001 ):
Only the SQAD data posted on AMIC


Wednesday, May 02, 2001 #4357
How do I convert cpm's from SPARC to CPPs by market?For example, NY radio Average cpm for 3Q 01'=8.40 for A18-49. Its population is 8097000.

The Media Guru Answers(Saturday, May 05, 2001 ):
Think of the CPP as the cost of 1% of the specified population. So, the general rule for cpm vs CPP is
CPP = cpm X 0.01 X population in thousands.

This requires the cpm and cpp to be based on the same geography, so be careful. If you're working with DMA cpm and DMA CPP, that's fine, but typically cpm is based on total survey area (TSA) and you are looking for metro CPP.


Tuesday, March 20, 2001 #4272
How do you calculate cpm?

The Media Guru Answers(Tuesday, March 20, 2001 ):
Cost ÷ audience impressions in thousands


Monday, March 19, 2001 #4266
What is the best way to do a spot cable vs.spot radio analysis?

The Media Guru Answers(Tuesday, March 20, 2001 ):
Compare the facts you want to compare: geographic coverage, rating, cpm, cpp, reach, impact, etc.


Tuesday, February 27, 2001 #4213
Do you have any data or can you recommend a data source that provides me with costs on buying television time in the New York Area, and any articles on how many people really watch a tv commercial, versus what percent get up during commercials to get something to eat, or pay no attention, or change channels to avoid commercials, I am trying to compare purchasing tv time in cpm cost per thousand, and assess the media's effectiveness. Bob Nathan

The Media Guru Answers(Tuesday, February 27, 2001 ):
Cost data: see SQAD

Articles of the sort you want may be in the archives of trade media, but are most plentiful at The Advertising Research Foundation InfoCenter. For details about the InfoCenter, call 212-751-5656, extension 230.


Tuesday, February 20, 2001 #4197
Hi Guru, we have just added an ad management tool to our newly re-designed website and are working on our rate card now. Our site averages approx. 450,000 impressions per month. Does a $30cpm for a full 468x60 ROS banner seem realistic? We plan on asking a minimum of 50,000 impressions, but is this typically sold per month or based solely on impressions? Also, are cpm's typically gross or net?

The Media Guru Answers(Thursday, February 22, 2001 ):
$30 is a somewhat above average cpm for a site with no special audience. See Ad Resource.

Buyers will ask about cpm and 50,000 impressions is a reasonable minimum for an interested party if you can interest serious advertisers. If your content is such that it's mostly going to attract "mom & pop" advertisers, $1500 might be a bit rich.

cpms may be gross or net (AMIC quotes net), but be explicit whichever you use.


Thursday, February 08, 2001 #4173
Is there some sort of media "brokerage" company that a national planner/or buyer can use to go and buy national programming by daypart? Example: You tell this company what dayparts you want to buy and they go in a find the programming based on your cpm.

The Media Guru Answers(Sunday, February 11, 2001 ):
This function is the basic job of a national buyer. It seems strange that a national buyer would want an intermediary to do the job. Advertisers without national buyers on staff nor at their agencies would use a media buying service to contact the national broadcast organizations, have them submit proposals of schedules in the desired dayparts and negotiate the rates. If you intend to do your own negotiation, it is pointless to use such a service just to solicit proposals.

Several buying services are listed in AMIC's Web Sites area.


Wednesday, February 07, 2001 #4169
I have done some research and have discovered that cpm rates vary across genre; but I was also wondering if there is information about cpms and how they vary across demographics. Thank you.

The Media Guru Answers(Wednesday, February 07, 2001 ):
Naturally, there is variance across demographics. A given commercial announcement has a specific cost. Let's say $1000. cpm is that $1000 ÷ demographic audience. So if there are 200,000 Adult 18+ viewers, the Adult 18+ cpm is $5.00.

If those adults consist of 125,000 Women 18+ and 75,000 Men 18+ then the W18+ cpm is $8.00 and the M18+ cpm is $13.33.

Obviously, M25-49 will be at a higher cpm than that and so on.


Monday, February 05, 2001 #4157
We have been asked to apply a media value to a client's presence at trade shows, and I'm not sure how to approach this task. Any suggestions would be appreciated. Thanks.

The Media Guru Answers(Monday, February 05, 2001 ):
The process of determining media value of non-media activity is typically based on applying the cost-per-thousand of one prototypical medium to the audience of the non-media activity.

Since trade show attendance is never anywhere in the range of mass media, this is likely to be a disappointing exercise. For example, a major trade show might have an attendance of 50,000. If you use your TV cpm, and it's $20, then the value of the trade show is $1000, which is likley to be far less than the actual cost. And if you more realistically only count those who vsited or at least passed your booth, then your media value might be only $100.


Tuesday, January 16, 2001 #4101
Dear Guru, I am a print planner trying to evaluate national network radio proposals. Other than cpm, what other criteria can I use to compare various proposals? Any advice you can give me about evaluating and negotiating this buy will be greatly appreciated. Thanks!

The Media Guru Answers(Wednesday, January 17, 2001 ):
All the same standards as you would use in print can apply:

Coverage, composition, reach contribution, content/environment, value added/merchandising, etc.


Thursday, December 07, 2000 #4025
What is the formula for cost per thousand?

The Media Guru Answers(Thursday, December 07, 2000 ):
Cost ÷ impressions expressed in thousands.


Friday, November 17, 2000 #3973
What is cost per miller? What is rating point? What is efective frecuency?

The Media Guru Answers(Friday, November 17, 2000 ):
  • The Guru has never encountered "cost per miller." Perhaps you mean "cost per mille" which is how some people interpret "cpm," which actually means cost per thousand, based on the Roman numeral "M."

    This in turn means cost per thousand impressions delivered by the medium. An impression is one exposure of advertising to one single member of the target audience.

  • Rating point is audience expressed as a ratio. Target impressions divided by target universe or "base". Thus, if the medium delivers 1,000 impressions and the population universe is 5,000, there are 20 rating points.
  • Effective frequency is a number of exposures judhged sufficient to effectively communicate a message. Therefore a plan may be judged according to the reach at this level of frequency or above. 3 is a commonly set level. The concept is going out of favor.


Friday, November 10, 2000 #3960
With what seems to be the demise of the online cpm model, we are trying to find other online ad revenue sources. How do sponsorships work and how do we find them? Are there any other online revenue potentials we can research? Thank you.

The Media Guru Answers(Sunday, November 12, 2000 ):
"Sponsorships" are a way of giving a marketer an identity on your site. It may be as simple as placing banners and pricing in a limp sum instead of cpm.

Visit Ad Resource for various revenue models.


Friday, November 03, 2000 #3943
Hello Guru, I was wondering if you knew what - a Portal with 6+ websites aimed at a specific target market (globally/translations) with over 40M unique hits per annum and exclusive branding rights to the site with over 2000 pages - be worth to an Advertiser. As we are not doing banners, the advertisers Logo and Branding will be intergrated in with the design and layout of the page and site. We have been told by various Marketing Sources $10-20M (USD) per site but as Branding on the Web (in this format) is relatively new, there are no guidelines yet. Your input and comments would be very appreciated! Wayne Sharp

The Media Guru Answers(Tuesday, November 07, 2000 ):
40,000 "unique hits" per year is extremely few as commercial sites go. The Guru assumes you mean "unique visits" as "hits' doesn't make sense in this context. In fact, neither does "uniques visits per annum." The Guru imagines you are adding up 12 months worth of unique visits, which may not be mutually unique.

Your expected pricing of "$10,000 - $20,000" per site seems ludicrously high, equating to a cpm of $1500 - $3000. Perhaps your low-traffic site has totally unique content of unique value to specific sponsors?

see Ad Resource for current rate comparisons.


Thursday, November 02, 2000 #3938
Do banner ad cpms still tally when the browser is minimized? My guess would be yes, but I'd like to know for sure.

The Media Guru Answers(Thursday, November 02, 2000 ):
Impressions are counted when an ad is "served," that is, the browser takes an action causing the ad to be sent by the serving computer. Typcally, the action of arriving at a page of a web site when the user has clicked on or typed in a link is the action causing an ad to be served. Obviously, this can't happen when a browser is minimized. Some servers may rotate ads and load new ones on the same page simply because time has passed. This will cause an impression to register even though the browser is minimized. It is one of many bogus counts, similar to a bottom of the page ad which is never seen because it is outside the range of the browser window.


Friday, October 13, 2000 #3887
I am interested in getting projected percentages of rate and cpm ioncreases for each major media type for 2001 over 2000.

The Media Guru Answers(Saturday, October 14, 2000 ):
Click here to see past Guru responses about inflation.


Friday, October 06, 2000 #3875
Where do I find a topline summary of cpm information for different media types --- Broadcast & Cable (Nat'l & Local), Print, Outdoor, On-line, etc. --- against targets of Adults 18+ and Adults 25-54?

The Media Guru Answers(Sunday, October 08, 2000 ):
Various major agencies publish guides to such data. The Media Week Directory will have sone of the data.


Thursday, September 28, 2000 #3849
One of our clients is very interested in a rich media campaign. He just want to have an approximated idea of the production, deployment, creative costs and other extra costs like extra fees for adserving or premium cpm. Bannertype Flash 1.000.000 impressions tech savvy target (USA MArket) I'd appreciate if you answer me asap. Thanks

The Media Guru Answers(Thursday, September 28, 2000 ):
Placement cost premiums of rich media vary from site to site, and may be as little as $0. The other issues are not media questions.


Friday, August 25, 2000 #3747
can you please explain various tools through which one can determine the efficieny of a TV plan

The Media Guru Answers(Monday, August 28, 2000 ):
"Efficiency" has a standard definition, so it is subject to arithmetic formulas rather than tools. Efficiency is defined as cost per unit of audience. "Audience" might be expressed as impressions or rating points.

So "efficiency" usually means, cpm (cost per thousand), which is the cost of a schedule or advertising unit ÷ the sum audiences of the ad units (in thousands) and CPP (Cost per Point) is the cost of a schedule or advertising units ÷ the sum of the ratingss of the ad units.


Thursday, August 24, 2000 #3744
Guru...I need to price the sale of advertising space on a time and temperature recorded message. I was considering using Internet cpm since I do have the call volume per month. Are there any benchmarks specifically for this time and temp service? I appreciate any insight you have -- thanks.

The Media Guru Answers(Monday, August 28, 2000 ):
This seems to be a unique service for any given area, so competitive benchmarks aren't likely to be relevant. Like the internet, your message gets in the way of very specific information that the consumer is sseking, but even more so. Radio is probably a better comparison, unless you are selling to someone who can really capitalize on a time or weather environment.


Friday, August 18, 2000 #3718
I am new in the field of internet advertising sales, and I have never sold ads for the media before. Are there any web based pricing charts or formulas to use for calculating conversion rates, cpm, cpc and cpa?

The Media Guru Answers(Saturday, August 19, 2000 ):
Sample pricing and a cpm calculator can be found at Ad Resource.

"CP_" anything means "cost per" whatever. It's simply cost divided by thousands of ad impressions or clicks or anything.


Tuesday, August 08, 2000 #3687
Hi, How do I compare two web sites targeting the same audience - should it be based on the number of impressions delivered or cpm? Any formal research on this??

The Media Guru Answers(Tuesday, August 08, 2000 ):
cpm. You are buying a certain number of impressions. It matters little that the site could deliver 10 times as many as you buy or 50 times as many as you buy.


Tuesday, August 08, 2000 #3684
cpms for portals are often quoted as being in the $20 to $40 dollar range. As ane example, Yahoo! are shown with an effective cpm of more than $40 in the AdZone analysis for June 2000. However, taking the figures for ad revenue and page impressions in the latest Yahoo! financial figures (for Q1 2000) gives a cpm of only about $4.00. Why the big difference?

The Media Guru Answers(Tuesday, August 08, 2000 ):
What you are asking is probably more of an accounting question than a media question, but:
  • If you are looking at the same source of Yahoo financial data as the page the Guru checked, you are looking at NET revenues, while the arithmetic of cpm times Impressions would yield Gross revenues. Of course that should not lead to a 90% discrepancy, but perhaps it could account for 50%, and . .
  • AdZoneInteractive's Ad Data uses published rate card cpms, and rate card rates are certainly higher than real deals, which might be T 50% of rate card for big advertisers, and
  • If you watched carefully while drilling down to the financial data from the home page, you would have noticed that you generated several Page impresions with no Ad Impressions. There were also no outside banner ads on the Yahoo home page. Combined with unsold inventory, perhaps more than 50% of Yahoo page impressions generate no ad revenue.
So if Net is half of Gross, and real rates are half of rate card, and half of impressions aren't sold for advertsing, then it all hangs roughly together.

I.e $40 x 50% (net vs. gross) x 50% (rates) x 50%(unsold) = $5


Monday, July 24, 2000 #3646
Media Guru, I have been searching all over for a direct mail list of international ISPs. I have checked the SRDS thoroughly, and I have also contacted several major list managers and relevant publications. So far, I have come up with zip. There are several domestic lists of ISPs, but I have been unable to find any international lists. Any suggestions? Thanks!

The Media Guru Answers(Monday, July 24, 2000 ):
The Guru presumes that when you say "international" you mean "foreign." There would be only a handful of ISPs operating multi-nationally. A list of ISPs by country is available at The List. Direct mail list houses sell or rent lists based on cost per thousand. It is possiblt that there are too few ISPs outside the U.S . to make maintaining such a mailing list economically feasible for a U.S. list broker.

One resource to check is Direct Mail Connection


Thursday, July 06, 2000 #3599
what are the methods of pricing that most sites use for advertising? Is there any differences in ad. pricing methodolgies between targeted sites vis a vis large network sites Cud you also direct me to some sites that cud give me more info?

The Media Guru Answers(Thursday, July 06, 2000 ):
The most common method of pricing is cost-per-thousand advertising impressions.This methodology works across all types of sites.

Ad Resource has a lot of pricing information.


Saturday, July 01, 2000 #3588
Dear Guru, I currently run a site with 1,000+ members, and it is growing 30-50 members a day. I need to find advertisers that will buy banner space in our "VoiceBox". A "VoiceBox" is given to every member, and they can talk live to friends and family via their "VoiceBox". The banner in the "VoiceBox" rotates every 30 seconds. My question is how can I find advertisers that would be interested in this unique way of serving banners? Is there an agency that may be able to help me find advertisers? Please check out my site and give me advice on how to find advertisers. The very lowest I can sell this space for is $7 cpm. Thank you very much, Shawn Randazzo

The Media Guru Answers(Monday, July 03, 2000 ):
Unless you can find a way to qualify your members as highly desirable in some way, you don't seem to have an advertisng medium here.

Let's imagine your growth continues nicely and a year from now there are 10,000 members. How many are conceivable going to be in a chat at one time? 100? If so, one banner ad showing is worth 70 cents. Over the course of a month, which is the typical advertisng period, can you deliver 10,000 impressions for a banner? If so you will earn $70. No sales rep would bother with this.


Monday, June 26, 2000 #3578
Given that available inventory on web sites is virtually unlimited what prevents sites from continually dropping cpm prices? This is about to happen in India where a large international site with extremely large no. of pageviews has dropped prices significantly. How do other sites react in this case?

The Media Guru Answers(Monday, June 26, 2000 ):
What prevents sites from dropping prices is the revenue the owner wants to generate.

A large number of "generic" untargeted pageviews is less valuable than targeted impressions. This is why sites charge a relative premium for keywords, section-specific impressions, sponsorships, etc.

"Unlimited" is a rash statement. There are only as many pageviews as there are visitor requests for pages, and only just so many ads that can be placed on a page.


Tuesday, June 20, 2000 #3562
I would like to know which reports as to my web advertising I should except from the web site I advertise on. If you have any examples of empty reports as to the traffic in my web page/banner clicking figures - that would be great thanks ifat

The Media Guru Answers(Tuesday, June 20, 2000 ):
The miniumum basic report expected from any commerical web site would be banner exposures and click rates. Typical frequency is monthly. Sites could also break down exposures and clicks by pages associated with the exposures and clicks and the geography of the persons exposed and clicking.

Other than the basic exposure (impressions) and click count nothing is truly expected unless part of the deal. If you are buying a flat advertising rate, without cpm or audience guarantees, even that data may not be assured.

In any case, this basic data is too simple to need standardized reports. How many ways are there to arrange two numbers?


Tuesday, June 13, 2000 #3548
I am in the process of evaluating a print proposal submitted by a business to business annual register with company listings/profiles, accessible by category. In addition to receiving a P4C ad, my client wil also receive 8 bold type listings with descriptive information and 4 bold type listings(company name and phone # only) throughout various sections of the register. At first glance the package looks like a great idea. The circulation is nearly 100% targeted, the cpm (based on the P4C alone) is very low, and there are additional merchandising perks that will expose my client to their target for one full year. The problem is, I must put a "value" on each component of the package. Do you have any ideas on how to place a value on the "bold type listings" described above?

The Media Guru Answers(Thursday, June 15, 2000 ):
Your situation is analagous to evaluating reach versus GRPs or a full commerical in a special versus billboards.

Since the deal seems efficient and effective simplay based on the P4C, any value you give to the other elements can be arbitrary and will be just for the sake of dicsussion. Why not calculate the impressions of all the other elements and price them at 25% of the P4C cpm?


Thursday, June 08, 2000 #3539
There are a lot of new Internet appliances coming out on the market with built-in browsers. The display is always on. How or where can I determine the value of an icon/banner button for advertising on this display screen?

The Media Guru Answers(Sunday, June 11, 2000 ):
The Guru would count the times the machine goes through a fresh "on-cycle" or newly dislays the banner. The apply a web cpm.


Tuesday, June 06, 2000 #3536
How real are the rate cards that websites post for their online advertising? I see rate cards that say $30 or $40 cpm, such as for the individual sites represented by DoubleClick. Yet DoubleClick's own statistics show they are averaging only about $1 cpm overall. Are the rate cards only the starting point for negotiating very deeply discounted negotiated actual rates? Does anyone ever pay the stated rate card price? From: Sbernold@aol.com

The Media Guru Answers(Sunday, June 11, 2000 ):
Just as in all other media, on-line sales at rate card prices are rare. Those that occur are most liley at powerful B2B sites where the desirability of a unique audeince is well understood and rate cards are more closely observed, even at cpms over $150.

Comparing individual sites' rate cards to actual cales across large networks is unrealistic. While a single site buy may be pricesd at $30, there is likely also a "Channel buy" of sevetral $30 sites at a $15 channel cpm, and also a full network published rate below that. The Guru would be surprised to see the actual average of sales across DoubleClick sites as low as $1 or to see DoubleClick publishing any such statistic.

But, yes, rate cards are only a starting points for general audience sites.


Tuesday, June 06, 2000 #3535
Hi Guru I think this service is super.Congrats. Now for my question: I am trying to value the cost of an web-alliance and in doing so ,need to define metrics for the alliance. The alliance is basically sponsorship and we will look for exclusivity.What are the metrics you would consider?Which are tangible and how would you measure it?I have looked at cpm,Cost per Click etc.Also,what are the costs for opt-ins ,like email addreses etc.? Your inputs will help a great deal. Thanks Ash

The Media Guru Answers(Sunday, June 11, 2000 ):
Obviously, the answers depend on the goals. An ecommerce site wants to produce sales. Clicks that don't lead to sales are not worth measuring. An ad-supported site wants traffic. Clicks and page loads at the target site are what matters.

The Guru is used to seeing email impressions valued comparably to web impressions, and clicks from email parallel to clicks on the web.


Thursday, June 01, 2000 #3521
Hi Guru, I am trying to quantify the value of leveraging a consumer DB for a targeted sports marketing campaign via the internet but am unsure where to begin. Any ideas as to how I might figure out what the ad space on our web site is worth? (be it real as in banner, or virtual as in e-mail). This web site will allow our clients to promote their products to their own customers (we are merely an ASP). Moreover, we will have a DB of email addresses of our client's customers and can implement a limited direct marketing campaign. How much will this DB be worth to our clients? Are there sites that contain this information?

The Media Guru Answers(Thursday, June 01, 2000 ):
For some ideas about online ad rates, see Ad Resource. The Guru believes e-mail advertising can be priced at the same cpm as web banners.


Friday, May 26, 2000 #3498
Are there any metrics for advertising on streaming media sites, eg: On2.com, where commercials and text links are incorporated into a media piece? Is the cpm cost higher in this format, and how are the impressions counted? (looking for a pricing structure to charge advertisers for a converging media site). thanks.

The Media Guru Answers(Monday, May 29, 2000 ):
ADResource offers comparisons of various online rates.

There should be some added value if you can get the few consumers who are properly equipped (now about 4 million or fewer), to sit still for it.

The Guru tried ON2 and was discourages by the site's attempt to download a plug-in without asking first. In these virus-paranoid times, it's quite off-putting. The Guru imagines such sites are a very long way from generating enough ad traffic to think about charging in cpm terms.


Monday, April 24, 2000 #3417
Dear Guru: When buying radio, do buyers get better rates just by selecting all Adults 18-54 vs. selecting a more specific demo? Does specifying the demo drive rates up? Thanks.

The Media Guru Answers(Tuesday, April 25, 2000 ):
Stations typically set their basic prices by the cpm acheived against a broad demographic which buyers often want, such as Adult 18-54.

A station with great competitive strength in a specific and hard-to-reach demographic might raise its pricing if a buyer asked for a proposal on that demographic. Conversely, a buyer might get better prices by asking for a proposal on a demographic where the station is less competitive.


Monday, April 17, 2000 #3404
Understanding that this is a COMPLETELY subjective question with many contributing variables, running the gamut from network to daypart to quarter I am trying to determine an average "National Network TV" cpm to apply for a planning budget exercise. Do you have a range you recommend using? Thanks in advance!

The Media Guru Answers(Monday, April 17, 2000 ):
With all the unspecified variables making any answer almost meaningless, try about $8.00-$9.00 HH cpm


Wednesday, April 12, 2000 #3394
For a class project i'm trying to find information regarding rates and audience size for the 10 most popular childrens shows. Ages 2-11. Where would i be able to find this info. and if possible for free??? Thanks, Jaclyn Carlson

The Media Guru Answers(Sunday, April 16, 2000 ):
The Guru has not found program-specific rates for TV programs published anywhere, free or otherwise. Nielsen has cpm reports, though.


Wednesday, April 12, 2000 #3393
What is the radio industry standard for a denominator such as cpm in print media. The C/RP is fine for comparisons in the same DMA, but what about cross-DMA comparisons?

The Media Guru Answers(Wednesday, April 12, 2000 ):
cpm works in radio, too, and it's the right metric to use across markets. Arbitron reports thousands as well as rating, so it's always available. To get a rough estimate of cpm, divide CPP by 1% of the target universe expressed in thousands; Cost Per Point is the cost of reaching one percent (one rating points' worth) of the universe.


Friday, April 07, 2000 #3376
I work at the research department of a newspaper. Can you tell me where I can find more information/cases about how to determine advertising rates for display ads, different from the traditional mm/column price.

The Media Guru Answers(Sunday, April 09, 2000 ):
You seem to have made this a production question, rather than a media question. In media terms though, if an ad price is set as cost per column-inch, then this price can be re-expressed as cost per thousand circulation or cost per thousand audience for the given ad size.


Tuesday, April 04, 2000 #3367
Can you give me any data on the efficiency of using preprinted advertising inserts in newspapers

The Media Guru Answers(Thursday, April 06, 2000 ):
You need to check ratecards. There is usually a statement of cpm for carrying an insert.

Broadstrokes information may be foound at The Newspaper Advertising Association.


Tuesday, March 28, 2000 #3350
I am asking a follow-up to the performing arts corporate sponsor question and the value of their logo on our website. Thank you by the way for your prompt response - it has been very helpful. Could you also give me an idea as to the value of a link to the corporate sponsor's webpage?

The Media Guru Answers(Tuesday, March 28, 2000 ):
If by this you mean you will make the sponsor's logo on your website "clickable" to link to the sponsoe site, that is the same pricing as mentioned previously for impressions; the typical web ad impression is mad by a clickable banner which links to the advertiser's site.

Some deals are made on a cost- per-click basis. On this basis, clicks are selling for a ridiculously low 25 cents. It is not a good deal for a site. When a site sells impression for a $40 cost per thousand, it needs to get $8 per click as an equivalent.


Saturday, March 11, 2000 #3308
This is a follow-up to my question of yesterday, regarding cost per web visitor for the major media. The data to which you referred me were very useful, and I thank you for that reference. As you note, however, nothing is provided there (or anywhere else I have searched) to determine the rate at which such cpm actually results in a web visit. Any thoughts on sources, or a means of reaching an educated guess, on that all-important information? Thanks again and best.

The Media Guru Answers(Saturday, March 11, 2000 ):
t was not clear that you were asking about other media being used to drive web traffic. The Guru thought you were considering these media as competition.

Keep in mind that the ad itself may be more important than the media vehicle. On January 2, 2000, the NY Times ran an article on ecommerce giving a comparison of web visits versus traditional ad impressions, thought these were not identified by media type except for TV. The range was enormous, from one visitor for every 2.7 TV impressions at Beyond.com to one per every 2977.3 at Living.com. Of course, the number of impressions in other media is not considered in this ratio.


Friday, March 10, 2000 #3306
Guru, I'm sure you get several questions about cpms for Internet advertising, I have one more for you. I have seen figures showing the average business to consumer cpm to be around $35, do you know what the average b2b cpm is? Thanks for your help.

The Media Guru Answers(Friday, March 10, 2000 ):
Of course, the ranges are enormous. Consumer probably averages lower than $35, these days. Business to business is higher than consumer, simply because the smaller any target, the higher is its cpm, typically. Business-to-business cpmS range generally from $12 to $200. The Guru would guess the average is more like $50-$75.


Friday, March 10, 2000 #3304
I come before you with a novice question. I am involved in the early stages of a dot-com startup and am trying to develop some kind of idea of what numbers of visitors are delivered per dollar by each of the major advertising media. Generalities are just fine; when you've never played ball, just entering the ballpark is a big step. Thanks and best regards.

The Media Guru Answers(Friday, March 10, 2000 ):
"Visitors" is one of the unique measures of the internet. It isn't readily comparable to measures of other media. On the other hand, the way internet impressions are counted is different as well. The best comparison will be your cost per 1000 visitors versus cost per 1000 (cpm) on impressions in other media. You will find some cpms in AMIC's Ad Data area.

Keep in mind that on line vistors measures are usually not specific as to age while other media cpms are usually based on 18+ or 12+.


Tuesday, February 29, 2000 #3260
Guru - internet cpm models do not appear to involve the issue of how much time each banner is displayed. Is there any numbers on this (i.e., average stickyness) that is expected?

The Media Guru Answers(Tuesday, February 29, 2000 ):
Nor do cpms in other media relate to the duration of exposure unless time is the unit of sale, as in broadcast. The Guru considers stickyness to be about time spent on a site, perhaps viewing several pages with different banners, and not related to the amount of time a banner is visible. It would be a tricky concept anyway, since banners are not neccessarily visible the entire time a visitor is on a given page, depending on screen-size settings and scrolling behavior.


Thursday, February 24, 2000 #3242
Dear Media Guru: Is there a syndicated or published source for network radio cpp's or cpm's? Thanks.

The Media Guru Answers(Thursday, February 24, 2000 ):
The Guru thinks there is not. Spot radio is offered by SQAD


Wednesday, February 23, 2000 #3239
Dear Guru: I need to analyze a cpm tv negotiation on w1849. I would like to transfer the negotiated w1849 cpm to w2549. Can you please explain the formula to transfer Thanks.

The Media Guru Answers(Thursday, February 24, 2000 ):
Step 1: calculate the vph ratio (or impressions ratio) of w25-49 versus w18-49.
Step 2: divide the w18-49 cpm by this ratio.

Example:
Suppose w18-49 cpm = $10.00
Suppose the w18-49 vph is .700 and w25-49 is .600
then the ratio is
.600 ÷ .700 or
.857
Then $10.00 ÷ 0.857 = $11.66

It's best if you have the actual vph or impressions of your buy, but you can make an estimate from the daypart averages.


Thursday, February 17, 2000 #3226
Where can i find an analysis of cpm for all media, including print, radio, television, outdoor and internet?

The Media Guru Answers(Friday, February 18, 2000 ):
Several media are compared here at AMIC's Ad Data area. Without being very specific as to demographic and type of site/ad type, internet cpm averages are meaningless. But you should find some data at NUA Internet Surveys or The Industry Standard.


Friday, February 11, 2000 #3208
We are in the early stages of learning more abouthow internet banner advertising works and how ads are priced. Could you please help me with answers to the following? Can banner ads be placed locally, regionally and nationally? How are the rates structured - cpm? How do companies who measure website audiences determine the number of viewers? Regarding advertising costs, is there a range of what an advertiser expects to pay for banner ads? Do you know what the name of the ads at the top of the home pages are called? What about the ads that typically appear to the right as you scroll down - do they have a name or term? Thanks Guru.

The Media Guru Answers(Sunday, February 13, 2000 ):
  • In principle, all sites are accessible to all internet users. Web servers can identify the location where a web user's ISP is based and decide whether to serve specific pages or ads on that basis. The big flaw in this capability is that users of the giant, national web connectivity providers all appeat to be located at the providers' locations, such as the Virginia headquarters of AOL.
  • Most banner ads are sold based on cpm. Some are sold based on cost-per-click or share of revenue created by click-thru visitors who buy on the advertisers' sites. Others are based on a flat price.
  • The Guru is aware of cpms from under $2 to well over $100 for highly targeted sites with specific, proven value to an advertiser. The majority of sales are falling between $10 and $50, and the average is probably about $25 -$30 today. Cost per click is in the 25 cents to $1 range. With today's average click rate of around 0.5%, that equates to a cpm of $1.25 to $5.00
  • Web audiences are measured in many ways. One, which the Guru prefers, is by "metering." Software is placed on the computers of a large sample, perhaps 10,000 or more. The software tracks the users' web site visits, and on a schedule reports the activity to the measurer's computers for compilation. MediaMetrix is an example of this type of measurement.

    Another is a survey, such as the ones conducted by MRI which asks another very large sample about their web activity. This type of measurement is capable of much less detail, relies on memory, and can only report the largest sites, a fraction of those reported by metering.

    The third common measurement is analysis of a site's own server logs, preferably with a third party audit through a service such as ABC Interactive

  • When ads are sold on a cpm basis, the cost can be flexible, and advertisers can order $500 or $500,000 worth, based on the appropriate number of impressions at the agreed cpm.
  • There is no special name for a top-of-page banner. Such a postion may be part of a site sponsorship, just a rotating banner or a fixed, premium-priced position. Ads down the right side, typically smaller, or square or vertical have names for the shapes, but may be placed under a variey of deals, like the top-of-page banners.


Thursday, February 10, 2000 #3204
I am looking for a source to provide cost per points/cost per thousand for the various radio networks. Thanks.

The Media Guru Answers(Sunday, February 13, 2000 ):
Click here to see past Guru responses about Network Radio costs


Wednesday, January 26, 2000 #3160
Hello Media GURU! Online question... Are any Online Ad Networks such as Doubleclick, ClickNow, Valueclick, 24/7, etc. negotiating on a Cost Per Click basis? Are the sites they are serving ads to quality sites? What are the pros and cons of cost per click vs. traditional cpm buys?

The Media Guru Answers(Wednesday, January 26, 2000 ):
Yes some are doing this. For the most part it seems to be lesser operators, offering low ball prices for remaindered space, for instance 25 cents per click.

So a site doing this business has unsold inventory it is willing to let go at about $1.25 cpm impressions. Neither is an indicator of quality nor, at least, of strength.


Thursday, January 20, 2000 #3138
Dear Guru, What is the best way to evaluate spot cable with spot broadcast? I fear that CCP won't account for universes of cable systems. Is it cpm's? And wouldn't you have to use impressions derived from the cable universe? Thanks and GREAT site!

The Media Guru Answers(Saturday, January 22, 2000 ):
Yes, the cable universe must be taken into account. It is simple to adjust between the two universes. If you start from cable ratings, multiply against cable unverse and divide by total market universe to get comparable ratings.


Thursday, January 13, 2000 #3119
Media Guru, I'm an advertising student and will be going out into the working world of advertising on a media buying internship in two weeks. I have one question which i would much like your input on. The question is as follows; Junior media buyers are routinely asked to book millions of dollars worth of advertising. But do they know enough about the vast complexities of media to do the job right? sincerly, intern student

The Media Guru Answers(Wednesday, January 19, 2000 ):
No, they don't. But then again they aren't actually asked to do this. You have a somewhat oversimplified view of the roles, the Guru believes.

Junior buys operate within tighly defined limits on their authority to make spending decisions.

Over the course of a year a "junior buyer" at a large agency might book millions of dollars, a few tens of thousands at a time. Each time, in a properly run agency, there should be a set of buying parameters from a olanner which specifies the target group, amount of media weight, (GRP or impressions) type of programming or environment, minimum audience size of an ad unit, cpm/cpp range, and perhasp even reach of the schedule.

With all these parameters properly set, there is little room fro a junior buyer to make a significant error. The job is to find the right media according to clearly set, mostly numerical, standards and then to negotiate the best possible price.

Additionally, there should be review of a junior buyers proposed buy by a supervisor.

If you find yourself in a situation without these controls, then you are not observing a professional media operation.


Wednesday, January 12, 2000 #3116
I have cpm/CPP for traditional media (newspapers, magazines, tv, radio) for the US, but need it for other countries. Do you know where I can get up to date information for this please?

The Media Guru Answers(Wednesday, January 19, 2000 ):
Data like these are compiled and published by some of the international agencies such as Y&R and Saatchi&Saatchi.


Tuesday, January 11, 2000 #3111
I am putting a planning proposal together for a national radio and cable tv buy. What average cpm and CPP should I be looking at to target women 25-54 for each of these mediums?

The Media Guru Answers(Monday, January 17, 2000 ):
Get an indication of rates in AMIC's Ad Data area.

Get current data from SQAD.


Monday, January 10, 2000 #3105
I'm trying to find information on the effectiveness of fax broadcasting. My client feels it is an inexpensive way to advertise (cpm) but I'm worried it my cheapen their high-end product. I know we're now able to target such fax advertising just as you would direct mail but...isn't it considered just as bad as SPAM?

The Media Guru Answers(Monday, January 10, 2000 ):
The Guru would be surprised to find it's efficient, it must cost 3 or 4 cents per address which is $30- 40 per thousand.

Not only is it as annoying as Spam, it is also actually illegal - that is, advertising by fax to persons / businesses with whom you do not have an existing business relationship.

In fact, this law had been the early model for anti-Spam legislation.


Wednesday, January 05, 2000 #3096
Oh Great Guru -- I need to calculate GRPs, but I don't have reach or frequency on some tv buys. I do have cpm, total impressions and impressions/week and the total population of the demographic. Can you supply a formula for calculating GRP based on what I have?

The Media Guru Answers(Wednesday, January 05, 2000 ):
(Impressions divided by population) x 100 = GRP.

For example,
if impressions are 2 million and population is 1 million, GRPs = 200.


Friday, December 31, 1999 #3083
Can you help me out in the following areas: 1. How can an online agency offer an advertiser pre campaign creative testing of ad banners? What are the variables involved and can you suggest links to sites that do offer such solutions? 2. Can you provide an online plan for any hypothetical advertiser? What is the step by step approach taken? I know one will have to proceed looking at marketing objectives, setting impression levels and then buying impressions based on the campaign objective and target audience. Do you have a ready framework for a full online plan that you could share with us?

The Media Guru Answers(Saturday, January 01, 2000 ):
1. There are companies which do such testing, including IPSOS. C.A.S.I.E. (The Coalition for Advertising Supported Interactive Entertainment) will have a list of such vendors.

2.There are no standards for how an on-line plan should look, other than those for any media plan. Because the focus will be on selecting specific sites, the overall style will probably resemble a magazine plan more than any other specific type. One plan might focus on advertisng envorinment more than another which is more aimed at raw impresions, and both may differ greatly from a third based on click-rates or revenue generation. Analysis might focus on cpm or reach or availability of relevant pages or keywords. Creativity is more the rule than following a format.


Wednesday, December 08, 1999 #3037
What is considered an average level of annual advertising revenue for a consumer website? What is considered a low level, and what is considered a high level of revenue?

The Media Guru Answers(Thursday, December 09, 1999 ):
Stated this broadly, this question is like "How high is up?" With millions of web sites and hundreds of thousands of serious, commmercial web sites, no one could possibly have the data to make an intelligent average.

However, cpms (cost per thousand advertising impressions) and numbers of impressions available to sell can be dealt with.

The giant sites, like Yahoo and AOL may have 25 billion impressions to sell anually, and sell them at $30 cpm. That would equate to revenue of abouot $750 million per year if they can sell all their impressions. It could be even more, based on premium offerings, like keywords and section sponsorships.

By the time you come down to the 50th largest site, there may be only 150 million ad impressions to sell annually. And by the time you're looking at the 100,000th, perhaps only 5 million. Very small sites may be very specifically targeted and able to sell at a premium cpm of $50 or more. Smaller, general audience sites may sell at a cpm of $5 or less.


Tuesday, November 23, 1999 #2996
What is the current average cost per thousand that advertisters are paying for national network radio or nationally syndicated radio buys?

The Media Guru Answers(Sunday, November 28, 1999 ):
Questions like this need to be much more specific to get useful answers.

For example, this week, the Guru has seen such buys delivering in the $1.40 to $2.10 cpm range for Adults 18+, using some very, very specifically targeted networks and syndicated national radio media on a short schedule with short lead times. Other demographics, other sizes of buys, other timings and other programming types may vary greatly.


Friday, November 19, 1999 #2991
Media Guru, I have heard that banner advertising on-line is a waste of money. Do you know if there are any facts supporting the ineffectiveness of banner advertising? Thanks

The Media Guru Answers(Monday, November 22, 1999 ):
Effectiveness depends upon expectations. If your goals depend on consumer action, i.e. click-thru, you have to determine whether the expected 0.5% click rate will be enough. If you pay a $25 impressions cpm, you might be paying $5 per click. If 10% of those who click will buy, then you need to net over $50 per sale to call the advertising "effective."

If you intend to use banners for branding, you need to compare awareness results with other media. Some research has been done by DoubleClick and The Internet Advertising Bureau to demonstrate branding effectiveness.


Saturday, October 30, 1999 #2921
Dear Guru. How do we compare national TV-sponsorship in terms of cpm, with traditional spot buying? In order to do this we need to evaluate the lenght, creative factor and the added value of presenting the program. I have used formulas including these factors using indeces. Is this the "right" way of doing it? Do you have these formulas, indeces?

The Media Guru Answers(Monday, November 01, 1999 ):
Most of the comparison should be purely and simply cost-based.

Length and creative would not be a part of the difference between national and spot. The same commercial can run in either environment.

If you literally mean national sponsorship, that is with Opening and/or Closing billboards, this can be quantified by added length. As for formulas and indices, if you get ten "free" seconds of airtime, it is worth one-third of what you paid for a thirty. Any other element of national vs local is purely a matter of price and geography. Allowing a value for "in-program" positions versus in-break would be a judgement call and not worth much, in the Guru's opinion.


Friday, October 29, 1999 #2919
Hi Guru! I'm trying to calculate magazine cpms. Should I use the ABC Audited numbers, or the total audience numbers (some magazines have high "hand-off" rates)?

The Media Guru Answers(Friday, October 29, 1999 ):
Consumer magazine cpms are ususally compared based on total audience. High pass-along readership is good up to a point. You're most likley trying to reach people not necessarily owners of copies of magazines.


Thursday, October 28, 1999 #2916
Hi Guru, How is the cpm rate calculated by the web publishers?. what are the criteria adapted by them to arrive on their cpm rate?(say $30 or $40 for every 1000 impression).

The Media Guru Answers(Thursday, October 28, 1999 ):
The cpm = Ad Cost ÷ Ad impressions. Many sites quote ad rates in terms of cpm. That is you can order the number of impression you want your banner to receive, and get exactly that number priced at "x" cpm.

Several issues are taken into consideration in setting cpm prices:

  • Competitive pricing - a site can't successfully charge double the cpm of another with similar audience and content.
  • Traffic - up to a point, more size is considered to have a premium value. Then there will be econimies o scale
  • Unique audience- hard to reach demographics are more valuable


Monday, October 25, 1999 #2903
Are cpms higher on sites that have high frequency of use (ex. email sites)?

The Media Guru Answers(Wednesday, October 27, 1999 ):
There is no reason they should be. On the one hand, traffic is traffic. On the other, reach is often valued above frequency.


Friday, October 08, 1999 #2859
Looking for an up to date general cpm rate comparison across traditional media (TV, Cable,Radio, Newspapers, Magazines, Billboards) Is there any info source that gives the general range of cpm rates ?

The Media Guru Answers(Friday, October 08, 1999 ):
See AMIC's Ad Data area


Thursday, October 07, 1999 #2858
Guru, I am looking for information about current prices for 15 and 30 second video and audio ads streamed to viewers before news clips, short films, animation or other on-demand streamed content. I am in a position to sell this kind of advertising space and am having difficulty determing its value. Also, could you lead me to information about the value of banners placed around the border of the media players used to view streaming content. Thank-you.

The Media Guru Answers(Wednesday, October 13, 1999 ):
The Guru has not seen such video ads nor heard of them being generally used. If they are, then sources like RealPlayer would most likely be best informed. There are not likely to be "benchmarks" for pricing at this stage.

The banner at the edge, like one might find at ABC News should not have a different cost than other banners. With thousands of large, commercial sites out there, it is difficult to generalize about pricing.

If we say that $30 is roughly an average of major sites full-banner cpm, and this is well above TV's broad-demographic pricing, and streaming video quality is miles worse than TV, what is the basis for pricing it above banners?


Monday, October 04, 1999 #2843
Guru - I have been put in the situation of planning, negotiating and buying online advertising. I'm having difficulty in determining the appropriate number of impressions to purchase for a two week flight of an entertainment property. I understand every site is different, but is there a benchmark to follow? Someone once said that the minimum level of impressions to be effective is 10% of the site's available impressions. This seems high. Also, is there a syndicated source that lists the total number of impressions available per month? Can online impressions be purchased against a specific demo (i.e. Men 25-54)? Thank you for your help.

The Media Guru Answers(Monday, October 04, 1999 ):
There are many buying-minimum rules of thumb that seem arbitrary on first consideration, like '12x per week per station' in radio, but have a logic if someone clearly explains it.

However, this "10% of the available impression" idea is certainly not one of these. It's not only arbitrary, but relatively ridiculous.

Consider a site like Yahoo, which may generate well over 1 billion monthly impressions. 10% of that is 100 million. If you bought that weight at a $30 cpm, that would be $3,000,000 per month. Are there many advertisers spending at that rate? And, if you think about other top sites, it becomes even more fantastic.

According to Nielsen//Netratings, top, deep-pockets, online advertisers like Microsoft, Amazon.com. AOL and Yahoo each ran about 200 to 600 million impressions in August. And of course, they didn't do that on just a few sites.

What would a 10% rule achieve? Identification with a specific site? Perhaps some very targeted sites which fit your campaign creative very well are worth sponsoring at this level. Or do you think each person exposed is aware of how many other people are seeing other banners on the same site?

By the way, the Guru would be interested to hear anyone's justification of a '10% of available impressions' rule and will post here any that make sense.

It's also worth noting another point here: Bigness is of questionable value in selecting on-line media vehicles. Exposure isn't figured in the same way as for other media: In a magazine, each ad page is treated as if it had the average audience of the issue; within some tolerance, this is realistic. But in a popular web site with potentially hundreds of pages, neither the home page nor those within the site get all the monthly impressions the site accrues. Any one page might get less than one percent of the total, and a rotating banner might get less than one percent of the page where it's shown. One million impressions can be bought from a site with one billion to sell or with just two million. If the targeting is controlled, there is equal value.

Sometimes page or section content will allow targeting to be assumed. On some sites, registration data, or 'cookies', or IP tracking can allow ads to be served to specified categories of visitors.


Friday, September 24, 1999 #2821
What's a good benchmark for FSI (free standing insert) cpms? I'm considering placement with a company that offers national coverage (three zones: east, central, west) in a variety of well-established newspapers.

The Media Guru Answers(Saturday, September 25, 1999 ):
Pricing varies by specification. The best way to benchmark is to get competitive pricing. Try NewsAmerica


Wednesday, September 22, 1999 #2816
outdoor advertising costs

The Media Guru Answers(Thursday, September 23, 1999 ):
30 sheet cpm may be found at AMIC's Ad Data area under multi media costs. There are many other oudoor media types, so you should contact TDI or Outdoor Media.


Wednesday, September 15, 1999 #2800
I just did a media buy for radio, cable, and related internet sites for a NJ based portal business that wants to attract consumers to their site. They asked me what number of people visiting their site constitutes a sucsessful ad campaign...50-100 week? Since visitors won't be buying anything, (no e-commerce)how do you judge what kind of response is successful? Is there any research on new "Dot Com" companies who have advertised, and what kind of results they got?

The Media Guru Answers(Sunday, September 19, 1999 ):
Any advertiser needs to define its own success. Portal sites are usually expected to deliver boxcar numbers, they are playing in a league with Yahoo, Netscape, Excite, etc, which have 20 million or more monthly visitors.

If your advertiser isn't doing e-commerce, presumably it wants to sell advertising based on the size of the audience it can deliver. If portals sell monthly banner ads at a $35 cpm, what is 100 visitors a weeks worth? If it's 100 per week, and they each view 3 pages that's 1200 impressions or $42 worth of traffic. The Guru is guessing you spent more than that on the campaign. If these people come back every week, it will be a long time before a campaign at this rate of response is "successful."

Using the actual cpm and page loads at the advertiser's site, you can estimate how many visitors and page views are needed for a return on investment.

C.A.S.I.E. (The Coalition for Advertising Supported Interactive Entertainment) and Internet Advertising Bureau are most likely to have accessible research in this area.


Tuesday, September 14, 1999 #2793
What is the protocol for adding print delivery to a broadcast reach and frequency analysis? Does it skew the analysis or can it be done accurately with media planning software?

The Media Guru Answers(Tuesday, September 14, 1999 ):
Very simply, reach-based planning sets the reach / communications goal as the priamry focus of the plan. For example, rather than focus on cpm, the cost per person reached takes precedence over cost per person exposed (which is what cpm measures).

So, the first vehicle or medium in a plan might have the best cpm, but the second one is the one which, in combination with the first, produces the most overall net reach for the combined spending.


Saturday, August 21, 1999 #2733
Dear Guru. I'm interested in attention Rate in Print Media. (Example effect of size,color,placement in newspaper) Can you give me any data? In addition, How do you measure and analysis of attention Rate?

The Media Guru Answers(Saturday, August 21, 1999 ):
The classic measurments in this area come from Starch.

Attantion rate can be used to index values of different ads units or publications. These indices can be applied to cpms or audiences to reevaluate media plans.


Thursday, August 05, 1999 #2692
Where can I find TV cpm RATES for demos?

The Media Guru Answers(Thursday, August 05, 1999 ):
The most popular source is probably SQAD.


Friday, July 16, 1999 #2640
In recent years, more companies have been using Direct Response TV buys to maximize cost efficiencies. However, one drawback to this type of buying is the low clearance level of spots selected. Are there any statistics or research on predicting clearance levels for DRTV buys during the year (e.g., quantifiable factors for seasonality)? Thank you.

The Media Guru Answers(Friday, July 23, 1999 ):
The inventory pressure logically follows the cpm indices, which are widely available, but in any given week, surprises may occur. Since, in theory, DR advertiing pays for itself, you merely need to find a level to order that is sure to be more than the clearance will be. Whatever runs, runs, If more runs than you anticipated, it should pay off in added orders.


Wednesday, July 07, 1999 #2609
We're starting to place advertising on the Web and have never done an insertion order for Web-related advertising. Any suggestion or recommendation? thanks. ilaria - Austin, TX.

The Media Guru Answers(Wednesday, July 07, 1999 ):
Most web sites provide their own documents. But it's just like any other media:

Specify quantity (impressions, usually) per month or other time period, cost per quantity (cpm, usually), kind of unit (rotating banner, keyword banner, etc.) dates/duration of schedule, and payment/cancellation terms.


Tuesday, July 06, 1999 #2608
Our company is presently trying to locate a list of kids aged roughly 12-19 for a direct mailing. Do you know where we might find such a list? We are also interested in knowing what the most popular magazines are among kids in this segment (for advertising purposes). Lastly, we would like to determine what it costs to advertise (gross, not cpm) via the following media: TV (specialty channel), radio, Internet (banner), magazine (popular), billboard, and space. Any help you could give us on these questions would be appreciated. Thanks in advance for your assistance. Sincerely, Drew Spence Market Research Associate Lac-Mac Limited drew@mail.lac-mac.com

The Media Guru Answers(Tuesday, July 06, 1999 ):
Most list brokers would have a teenage list available. Try American List Counsel for starters.

. Seventeen ,Teen,YM,TeenPeople are among the most popuular, especially with female teens. Male teens gravitate to more broadly targeted titles like SportsIllustrated.

To discuss ad prices in the media you mention, you really must consider something other than simple gross. If the Guru tells you a :30 on a specialty channel cost $100 or $1000, how can you evaluate what you must spend to communiucate something?

Internet banners are sold in cpms and numbers of impressions, not flat gross dollars usually; major sites have more impression than you might buy so you buy a portion of the available impressions. You can get teen oriented sites' banners for $15-30 per thousand. But just putting a banner on all the teen pages of Yahoo could cost $1,000,000 per month.

or more. Billboards might cost $250 apiece, but you won't buy just one, you buy a quantity of daily effective circulation expressed as GRPs. A teen cpm might be $5-$10


Tuesday, May 18, 1999 #2510
Could yu give me some insights regarding pricing ad space on the net on the basis of fixed number of impressions? How are the slab rates decided upon? What is the minimum number of impressions one can sell for, 5000, 10000 etc.?

The Media Guru Answers(Tuesday, May 18, 1999 ):
Most larger, commercial general audience sites are selling at cpm's in the $15 - $30 range, barring special deals or unusual volume. This would make $5000 worth 167,000 to 333,000 impressions.


Tuesday, April 27, 1999 #2474
I am new to the newspaper world and need some help. I have my cost per inch and my circulation. I need to compare cpm newspapere to radio and tv. I have my radio and tv cpm but not sure what to use on newspaper my audience is a 25-54 and i buy 28" ads... is their a quick way to convert circulation to audience and do I use cost per inch or cost per 28"... My tv cpm is around $15.00 and my radio is around $8.00 any help would be appreciated.....

The Media Guru Answers(Tuesday, April 27, 1999 ):
Compare the cpm of the ad you would use, if you are using a tv :30 then compare the cpm for a 30 second unit with your 28" newspaper cpm.

Circulation does not "convert" to audience. Each newspaper, theoretically, has a different audience in relation to its circulation. But, in reality, the differences have a fairly narrow range and you can use average readership figures from The Newspaper Advertising Association site.


Wednesday, April 21, 1999 #2460
What is an average cost per thousand to advertise on a website?

The Media Guru Answers(Thursday, April 22, 1999 ):
The range is enormous, from $5 to more than $100, depending on the narrowness of targeting of an audience. Banner advertising on major, commercial consumer web sites probably averages $20-$25 gross cpm.


Tuesday, March 30, 1999 #2421
The need: I am looking for a way to factor 'page exposure' data into mainstream media metrics such as cpm or GRP. MRI tracks and calculates page exposure using the following: (#_of_days_magazine_is_read * #_issues_read * %_of_pages_read)= avg_page_exposure I believe such data would not only provide a more accurate picture of a readers exposure to the ad pages but could alter cpm & GRP rates. My Reasoning: cpm=(ad_rate/audience); audience=(circ * readers); 'readers' is thenumber of different set of eyes per issue (single exposure). This number does not take into account how long or to what extent the reader looked at the publication -- it could be the mailman delivering the magazine who remebers the cover or it could denote a subscriber who reads the issue cover to cover. Enter the issue of page exposure. Suppose I am considering a magazine with a cpm of .01851 = 40,400/(704,000 * 3.1). However, if this same magazine provided me with a page exposure rate of .99 = (3 * 1 * .33) -- which says that the audience takes 3 days to read the issue and reads about 33% of the issue a day (which I know is unrealistic, but hear me out). Now suppose I take the .99 exposure rate and add it to the 'reader' and recalculate cpm --- 40,400/(704,000 * (3.1 +.99))= .01404 -- I get a much lower cpm. My Question: Why can't I make this type of calculation with page exposure data -- where is the break down in my logic or math? Any insights would be GREATLY appreciated. Thanks in advance!

The Media Guru Answers(Thursday, April 01, 1999 ):
First, overall, yes it is a reasonable and not unusual concept to adjust cpm according to additional measured factors reported for magazines. However, there are some minor and some major issues with your process in terms of labels and decimal places, etc.

Yes, cpm is ad rate ÷ readers. Readers is circulation times readers per copy (refer to the explanation of MRI information which the Guru did for you in query #2403).

So the basic cpm -- cost per thousand impressions -- in your example is actually $18.51, assuming you mean $40,400 is your ad csot, 704,000 is circulation and 3.1 is readers per copy.

The exposure rate is a factor, not an add on. So the adjustment would be 3.1 times 0.99 or 3.069 or virtually no change. The cpm is now $18.70. If there was a very different page exposure factor it would make a difference. It is a valid way to reaxamine cpms.


Wednesday, March 24, 1999 #2407
How did the industry standard of requiring television stations to post at 90% of the estimated TRPs on local spot buys originate?

The Media Guru Answers(Wednesday, March 24, 1999 ):
Just because your agency and many others use this figure, it doesn't mean it's an "industry standard." But it is probably most common. The practice began in recognition of the statisical instability of the audience research, due to sampling issues. Two people, negotitating in good faith, and agreeing that a schedule should deliver 100 GRP, can find that, without anyone doing anything wrong, the schedule is reported to underdeliver because of "bounce" in the ratings. So to avoid arguements over probably half of all the schedules bought and sold, it became common to agree that if the schedule posted at least 90% of what was bought, it was "no harm / no foul." In fact, in most cases, schedules estimated in good faith should, statistically do better than 90%. And if a buyer finds that every schedule bought from a specific station came in near 90%, then there's something wrong; schedules should post over as often as under if statistical bounce is the culprit. Of course a buyer doesn't want all schedules to post 110% or bigger either, that would imply bad estimationg and overspending.

The 90% figure shouyld be a negotiating point. Don't automatically expect a station to honor it unless it's your stated policy or by agreement. Many schedules are bought without guarantees.

The Guru recalls his own buying experience when one salesman would offer 90% guarantee and the next 95%. It made it too hard to compare proposals. So the said to all the sellers. Give me only numbers which are 100% guaranteed. Raise the cpm you are offering, if you must, to compensate, but all sales must be on the same basis.


Wednesday, March 24, 1999 #2406
I have read MRI's Top Line circulation report and am concerned to see that the average cpm value is much lower than our own magazine (105,000 senior readers). The publications on MRI's report have a huge circulation. Where might I find cpm values for smaller audience magazines? Am I correct in assuming that cpm increases for publications of small circulation? Regards, Ray Mallett

The Media Guru Answers(Thursday, March 25, 1999 ):
First, you need to be clear on the distinction between circulation and readership (see query #2403, below).

If you are comparing other magazine's readership cpm to your circulation cpm you place yourself at a disadvantage.

Of course, economies of scale do make it possible for larger circulation titles to gain pricing advantages.

Also, magazines distributed by associations, where the magazine subscription may be a membership benefit but not ordered for itself, tend to have very low readers per copy, perhaps even less than 1.0. Note Modern Maturity (AARP), Amrican Legion Magazine and VFW magazine on that MRI list reference in Query #2403. Using that list and Standard Rate and Data Service (SRDS) Consumer Magazine Source you can compare circulation cpms for various sizes of publication.


Tuesday, March 23, 1999 #2403
I have been researching these questions for a number of days now and have been unsatisfied with the answers I have been receiving. I am a new member and new to this field, any direction would be most helpful. Thank you in advance... 1) What is the difference between Rate Base (a number guaranteed by publishers and audited by ABC) and Readership (a number provided by, say, MRI) levels for magazine publications? 2) Which number (above) is most often used to calculate cpm (I believe this calculation is ad_page_rate/readership)? 3) Is 'readership' really a composite number (perhaps a result of some other formula)? If so, does Page Exposure Rates factor into 'readership'?

The Media Guru Answers(Tuesday, March 23, 1999 ):
If you went to AMIC's Rates, Dates and Data area and clicked the link
"Audience data from MRI is available for
Fall 1998 for Total Audience, Circulation and Readers Per Copy
" you would see the table from which this image is taken:



The following discussion will use this table as a visual aid.

"Rate base" refers to circulation, the actual number of copies of a publication printed and sold for the average issue over a specified period of time. In the table, "Circulation" is the middle column of data.

"Readership" is the number of readers of the average issue. It includes "passalong" readers, who may not be the buyers / subscribers but read some else's copy. In almost every case, total readership will be greater than circulation. The first three columns of the MRI table we are looking at are readership numbers.

cpm can be calculated based on either circulation or readership. The circulation cpm (cost per thousand) calculation is: divide ad cost by the number of copies in circulation.

The readership cpm calculation is: Divide ad cost by number of readers of an average issue. Often readers within a specified demographic the advertiser is targeting are the divisor in this second calculation. As a planning tool, the readership cpm is more common than the circulation cpm, especially for categories of print that use readership research, such as MRI.

Many people misinterpret the common reporting of "readers per copy." The last three columns of the MRI data are readers per copy figures. What audience research actually measures is readership. A random sample of consumers is interviewed and asked about their magazine reading to determine how many readers there are for an average issue of a magazine. Readers per copy is a calculation done after the fact, dividing the readers measured by the circulation. It is a handy factor used to compare magazine pass-alongs or to calculate other audience elements.


Thursday, March 11, 1999 #2385
Will you explain to me how one ad size is better or worse than another? For example: 1/4 pg bw @ $830 with a $36.09 cpm - vs 1/8 pg bw @ $520 with a $22.61 cpm (within the same publication). I am working on a mediaplan and I am not certain which one would benefit my client more and/or how to justify it. Thanks!

The Media Guru Answers(Friday, March 12, 1999 ):
It is very straightforward to compare cost or cpm of two ad units. Creatives usually like a bigger ad (and will judge executions from across the room).

The question for a media planner is "if ½ page costs 60% more than ¼" does the larger ad give 60% better results?

"Results" might mean sales, copy recall, awareness or many things. And the percentage differential in question is key. Rarely if ever does a spread do twice as well as a page, though it cost twice as much. Cost must be balanced against impact. One of the common research bases of results comparisons, when past sales results are not an available standard, is Starch .


Monday, March 01, 1999 #2363
Dear Guru, We found a formula that is supposed to calculate newspaper impressions. (insertion X circulation*2.28*0.58)/1000) We thought that this was calculated simply by multiplying the circ by the # of insertions. Do you know what this formula could be doing? Thanks

The Media Guru Answers(Monday, March 01, 1999 ):
The Guru believes this formula is meant to estimate persons impressions. "Circulation" represents just copies, not readers.

The 2.28 factor looks like the Sunday average adult readers per copy. The 0.58 then would seem to be the composition for some demographic group, perhaps 18-49. The "/1000" seem to be meant to set the decimal for the particular context in which you found the formula, it will cause the result to be expressed in thousands. Perhaps the number of impressions derived from this formula was going to be used to calculate cpm.

See The Newspaper Advertising Association research databank. for other readers-per-copy and demographic composition data


Monday, March 01, 1999 #2362
Hi Guru We are web development company based in the middle east have just launch a real audio site for a local popular radio station. The radio station has asked us to market the banners on the site as well. Radio spots are sold on a 30sec basis and they have several packages for spot sales. We on the other hand have banners and require to sell them to potentaial advertisers. We cannot charge radio rates as they are too high and need to know how to set up the rates for the banners Regards Deepak

The Media Guru Answers(Monday, March 01, 1999 ):
Smaller sites without very specific targets are probably charging US$20 - US$35 cpms. You should begin by examining the rates of sites you consider comparable to yours.


Saturday, February 27, 1999 #2357
Mr. Guru, I am a student and am currently working on a campaign for a car company. My team and I would very much like to use the internet as a major media vehicle, but do not have enough information to give an accurate recommendation. Can you please give me any information or websites on: cost, who's on the net, cpm, what kind of advertising can be used, and why it would be an ideal vehicle(or how I can find out). Can you please send this information to my E-mail address: AiWare@. . .

The Media Guru Answers(Sunday, February 28, 1999 ):
It must be remembered that the Guru does not provide personal answers, only what is posted on this page.

The Guru wonders why you would "very much like to use the internet" if you lack information about cost, audience, advertising possibilities and benefits. Companies like Nielsen, MediaMetrix, MRI and Simmons can give a broad strokes picture of which sites appeal to your target and to what extent your target uses the web. Major web sales rep sites like DoubleClick, 24/7,and 2Can, can give you an idea of pricing and other aspects of advertising.

The Advertising Research Foundation library and C.A.S.I.E. (The Coalition for Advertising Supported Interactive Entertainment) have research regarding web effectiveness.


Tuesday, February 16, 1999 #2337
I have specialised in Account Management.But have got a job with Business Standard(newspaper in India).What media fundamentals do you think are important for me to learn before i join the firm in their 'Special Projects Marketing Department'

The Media Guru Answers(Tuesday, February 16, 1999 ):
It's a bit difficult to judge without knowing your job responsibilities, but basically. . .

Learn all media terms relevant to print sales, e.g.

  • circulation
  • reach
  • coverage
  • composition
  • cpm
  • duplication
  • etc.
Learn the meanings and the application of the concepts.


Friday, February 12, 1999 #2329
I am trying to find information pertaining to cost per click through ad rates on the internet. Do you have any information pertaining to average cost? As well as cpm's on the web. The Research Monitor section of your website provides Pricing Web Site Advertising (The Media Buyers View) white paper, but it is dated a few years back. Is it still relevant? Thanking you in advance.

The Media Guru Answers(Saturday, February 13, 1999 ):
The excellent compilation of internet news and research at NUA includes price data.

The pricing article's theories and concepts are still relevant, though specific prices mentioned may be out of date.


Friday, February 05, 1999 #2313
I have launched a newsletter for educators who administer a very specific type of program. It's an audience of great interest to sellers of curriculum materials aimed at that very niche. Unlike most subscription newsletters, I'm interested in accepting advertising, but have no idea how high to set my rates. I've got 90 subscribers as of this morning, and it's growing by 10-20/week. I expect that at least 150 people, maybe 200, will see my next issue. How do I determine a reasonable rate? I've also got a website where I post news updates. I'm getting about 20 hits per day, and expect it to dgrow dramatically as poeple find out about it. What's a reasonable rate to charge an advertiser to put his logo at the bottom of my home page with a link to an ad page? Help!

The Media Guru Answers(Tuesday, February 09, 1999 ):
Website banner cpms range from $5 to $100 or more, with an average around $30, depending on the number and uniqueness of the visitors or their perceived value to the advertiser.

Newsletter advertising might be in the same range, making an ad worth $1 to $20, but the competitive rates of other newsletters and direct mail costs in your target arena should be considered. In either case an audience of 200 will not justify much of an ad price.


Tuesday, February 02, 1999 #2305
What are the average demo. brackets for television's guarantee C.P.R.P. or cpm? For example, whether advertisers and media will use the fixed demo. brackets, such as women 18-39, or male and female 25-35 etc., to negotiate the guarantee C.P.R.P. or cpm. The demo. bracket will influence how many commercial spots are needed to fulfill the guarantee C.P.R.P.

The Media Guru Answers(Friday, February 05, 1999 ):
The standard brackets which are published in the ratings reports, such as men or women 18-49, are used. Obviously, a guarantee could not be based on a number which is not available.

Guarantees on very small standard brackets such as Men 18-24 may not be available due to the greater instabiltiy of their measurement.


Tuesday, February 02, 1999 #2302
Our web site is an educational application delivered over the web. The user spend most of the time interacting with a Java applet that refreshes the educational content. I want to sell advertising on the page but am not sure how to measure cpm since the user stays on one page. I intend to dynamically refresh the advertising while the user is on the page. It would seem to make sense to sell the spots by the number of seconds the banner runs. Is there a standard for how long an ad should run to count as an impression?

The Media Guru Answers(Thursday, February 04, 1999 ):
The TV standards are generally :15, :30, :60. These standards are not usually used on the internet except for full animation ads like those on the Pointcast service. Web cpms are based on exposures of the ad to visitors, and counting repeats, if delivered on different pages, is considered fair game.

Logically, your user is focused on the site's content, therefore pricing ads based on duration will be a tough sell, in the Guru's opinion.


Tuesday, January 19, 1999 #2276
What you can tell me about GRP and CPT? How to explain the formulas of them?

The Media Guru Answers(Tuesday, January 19, 1999 ):
The Guru assumes that by CPT, you mean "cost per thousand," which is abbreviated "cpm" in the U.S., (using the Roman numeral "M" for one thousand)>

GRP stands for "Gross Rating Points." It is the sum of all the ratings of all the advertisements of a schedule. Or it is the sum of all the impressions of a schedule divided by the population of the geographic market under consideration. "Impressions" and "Population" must be in the same demographic category within the same geography when applying this formula.

CPT, or cost per thousand, is simple a matter of dividing the cost of media by the number of impressions delivered expressed in thousands.


Monday, January 18, 1999 #2266
I have 3 general questions, please: 1) Advertising on the Web: a) how much money is spent on internet advertisng today, and what are the projections for the next 2 years?; b) what percentage of total advertising spending does internet advertsing represent today, and what is the growth rate/trends for internet advertising; c) current rates for internet advertising vary widely from $20-$80 cpm; do you see these rates ranges holding, narrowing (and if so what would be the range?), or will rates increase? 2) Advertiser Value Proposition: a)why are firms advertising on the web, and what type of firms are inclined to advertise there; b) what are advertisers looking for, or what criteria do they use, in choosing one sit over another? 3) Internet Media Buying: a) who is doing the media buying for firms interested in internet advertising? Thanks.

The Media Guru Answers(Monday, January 18, 1999 ):
Regarding your question 1a, NUA and CyberAtlas offer two of the best compilations of internet research. Jupiter also tracks this info as does Ad Age.

Re 1b: trends are too variable to project, Ad Age makes some effort to put it all in perspective.

1c. The range is even greater than you state. More competition in the mass audience sites may bring the low end down, but the high end, which is based on target selectivity and special opportunities is probably stable.

Regarding 2a, advertisers on the web are of all types. It makes most sense for advertisers with computer and communications targets or those targeting the demographics known to be web users.

2b: As with all other advertising, some advertisers prefer raw tonnage and others are looking for tight targeting or supportive content.

3: There are dozens of firms placing online advertising. Some are specialists and some are part of traditional ad agencies. Note the adjacent query inquiring about several of them.


Thursday, January 07, 1999 #2254
What is the reasoning that the cpm for terrestrial TV is higher than that of cable channel? Theoreticallay, the cost to reach 1000 people via TV media should be the same.

The Media Guru Answers(Friday, January 08, 1999 ):
The Guru wonders what theory you believe you are using? There can be no such theory or else all TV everywhere through all means other than cable would have the same cpm.

Differences which account for cpm variance include audience size, mechanical and manhour effort to deliver the programming, commercial load, commercial inventory, supply and demand and perceived program quality.

Obviously all but possibly the last one mentioned are vastly different for various forms of terrestrial (broadcast) TV and cable.

And, of course there are cases where cable has a lower cpm than some broadcast choices.


Thursday, January 07, 1999 #2253
How can I use Spot Quotations and Data (SQAD) quarterly TV Cost Per Rating Point Report (HH Ratings)to calculate cpm? Whether SQAD has info. of cpm for each DMA?

The Media Guru Answers(Friday, January 08, 1999 ):
There is a small difficulty in that the total audience usually used to calculate cpm extends beyond the DMA. But for your purposes this can probably be ignored.

"Cost per Rating Point" means the cost of buying audience impressions equal to one percent of the population. Therefore, dividing DMA CPP by 1 percent of the DMA population yields DMA cpm.


Wednesday, January 06, 1999 #2244
Dear Guru: Here is a question from your fan in Taiwan. Can you briefly introduce how the guaranteed cpm, the upfront and scatter market systems work in the U.S.TV market? Can you also recommend some web sites related to the preceding issues? Thanks a lot!

The Media Guru Answers(Thursday, January 07, 1999 ):
Briefly "guaranteed cpm" means that if the schedule purchased does not deliver the audience promised, additional announcements will be provided until the added audience delivery brings the cpm down to the guaranteed number.

The upfront system primarily sells to larger advertisers, who will spread their buy over all four quarters of the selling year (fourth through third quarters), with scaled ability to cancel portions of the successive quarters. cpm guarantees are included.

Scatter buys are smaller, as needed throughout the year, and may still include cpm guarantees, but the pricing structure will be higher than upfront. When upfront has sold well, inventory for scatter will be more restricted.

Advertisng industry news sites such as Ad Age will report on the upfront and scatter marketplaces as develoments occur.


Wednesday, January 06, 1999 #2243
Dear Guru: Do you have the latest ave. cpm for the four Networks as well as major cable channels in the U.S. (Prime Time cpm Rate)? Also, do you have the latest ave. cpm figures for the TV media in U.K. and Japan?

The Media Guru Answers(Thursday, January 07, 1999 ):
Here in AMIC's Rates, Dates and Data area you will find useful cpm data for these U.S. media. The Guru is not aware of similar sites for the U.K. or Japan.


Wednesday, December 16, 1998 #2223
dear guru- what is the best way to analyze magazines once proposals come in? Obviosly we want to evaluate comp, cov, cpm, positioning, added value, etc. do you recommend an excel spreadsheet with weighted averages? Is there one already set up on the site to download? Just looking to do this the smartest possible way. Thanks

The Media Guru Answers(Sunday, December 20, 1998 ):
All these factors, as well as some others, like added reach, and authoritative editorial are possible considerations. One can even consider the degree of the match of the magazines total impressions demographic distribution with the overall distribution of the purchaser.

It is extremely simple to build a spread sheet, making magazines the rows and making the specific factors the columns. Weighting ought to be set up as changeable so that it can be different from one advertiser's plan to the next, depending on goals. It will even be interesting to consider how magazine rankings change, when different factors get differing weightings within the same objectives. For example when reach is more important than frequency, is the magazine list very different than when these factors' importance is reversed?

Of course, the best approach is to independently compute the data using a syndicated data base (such as MRI, SMRB, MMR, TGI, PMB, etc.) and software such as Telmar's (AMIC's sister company) which handles all of the above data as well as many additional capabilities such as reach/frequency analysis and optimization.


Friday, December 11, 1998 #2215
I want to obtain some free media software.

The Media Guru Answers(Friday, December 11, 1998 ):
And the Guru wants one million dollars. What kind of media software do you need; to do what task? It is rare that the specialized software for reach and frequency, cpm rankers, etc is available free unless a particular medium creates some to fill a need when there is no standard software that works for their media type.

The only free media software of which the Guru is aware is Reach and Frequency for U.S. Spanish language TV.

Univision has temporarily withdrawn their HispaniCume, and Telemundo has just released an update of their STRETCH2 sysytem.


Tuesday, December 08, 1998 #2207
dear guru - to compute a cpm for OOH, would you divide the monthly cost for the board by 30 (days in month) and then divide that by imps x 1000? Please confirm. Thanks

The Media Guru Answers(Tuesday, December 08, 1998 ):
The daily impressions, expressed in thousands (which means divided by 1000) are divided into the 1-day cost of the board.


Wednesday, December 02, 1998 #2194
Dear Guru, can you name any media analysis tools and media predictive tools that media planners use on a regular basis without being too technical, of course. Many thanks

The Media Guru Answers(Thursday, December 03, 1998 ):
Here are several:

  • Reach: the number of different target households or persons exposed to a campaign (most often expressed as a percentage of the target universe, and most often calculated over a 4-week period).
  • Frequency: The average number of exposures of the campaign to those reached.
  • Gross Rating Points (GRP) / Target Rating Points(TRP): Essentially interchangeable terms for the sum of the audiences of all the ad units in the campaign, expressed as a percentage of the target universe.
  • Gross Impressions: Same audience count as GRP/TRP but expressed in whole numbers rather than percents.
  • CPP / Cost per GRP and cpm / cost per thousand impressions: should be self evident from the previous. These are referred to as the "efficiency."
  • Effective reach: Those in the "Reach" who experienced a specified minimum number of exposures (effective frequency)

All the above stem from the audience research tools and investment figures. So called "reach and frequency" systems typically generate all these figures.

Other tools, especially in print media are also occasionally used. These may include "time spent with" media vehicles, "page openings", attentiveness, etc.


Wednesday, December 02, 1998 #2192
Dear Guru. It is not still clear to me how to measure or calculate Reach of the ad campaign using media mix. For example, my ads on TV provided 90% reach, and ads in print reached 25% of the target audience. What is the total reach, frequency of the campaign? What other indexes can we find for such campaign? And my second question is about outdoor advertising. It is essential to measure the effectiveness of the ad campaign comparing awereness and sales before and after the ads placing. But that is somehow the post- campaign analisys and my client would like to see some feagures before the campaign starts (pre-campaign). What indexes (like reach, frequency, GRPs, OTS) can we provide to the discription of the outdoor ad. campaign? Thank You very much.

The Media Guru Answers(Wednesday, December 02, 1998 ):
Reach of a medium in a plan is simply a statistical probability. Further, it is generally thought that each medium overlaps each other medium randomly.

So, in your example, if you consider the reach of each medium as a decimal, the probability of not being exposed to TV is 0.10 and of not being exposed to print is 0.75.

The probability of not being exposed to either one, is therefore 0.10 times 0.75 = 0.075.

Therefore, total reach of the mix is 92.5 (if 0.075 or 7.5% don't see it then 92.5% do see it).

Other basic "counts" for a campaign are impressions (OTS), cost per rating point and cost per thousand impressions.

All of these counts; reach, frequency, GRP, OTS, etc are possible for outdoor, if the research has been done, in your country, to count the audience of the locations used.


Tuesday, December 01, 1998 #2189
Dear Guru. I've got several questions. 1. What is the difference between the following three types of compensation for the ad agency services: commission, fee and percentage? Are there any other compensation systems used by the ad agencies? 2. What is the right way to evaluate the efficiency of the advertising campaign: a) held in several cities at the same time (each city has its' own media vehicles and their ratings are measured for the target audiences based in those cities); b)using several medium at once (i. e. TV and print). 3. How can we measure the effectiveness of the outdoor ad campaign? Thank you in advance.

The Media Guru Answers(Tuesday, December 01, 1998 ):
  1. Commission is based on a percentage of the agency's spending on the advertiser's behalf. The spending will primarily be media purchase and (in the U.S.) traditional commission, usually included in media rate cards, is 15% of the gross spending. Other expenditures, such as production, are marked up 17.65% of the net spending; this is exactly equivalent to 15% of the gross.

    Fees are flat amounts of compensation for performing agency tasks. On very small accounts, 15% commission may not cover the work required to create and place advertising. On very large accounts, 15% far exceeds what would compensate the effort.

    By Percentage the Guru imagines you mean an agreed commission other than the 15 / 17.65% structure.

  2. Efficiency is typically expressed in one of two ways: CPP - Cost Per gross rating Point or cpm - cost per thousand audience impressions (Roman numeral "M")

    In comparing markets, CPP is problematic because the universe number for calculating the Points - or percentage of universe - changes. However, cpm just uses impressions, which can be added and compared across markets. Other issues, about units and print versus broadcast can merit separate consideration, but these would be beyond efficiency.

  3. Effectiveness measures depend on a definition of the effect desired; is it awareness or sales or share? To best measure outdoor specifically, you need to set up your standard of effect and measure it with and without outdoor.


Monday, November 30, 1998 #2183
Dear Guru, My question regards putting a value on an ad within a faxed newsletter. Our client is the head of the regional economic development council, and sends a weekly newsletter to 300 members. Membership encompasses a wide range of businesses: banks, contractors, developers, governmental entities, research groups, real estate brokers, financial planners...any individual or group interested in attracting business to the area. He wants to allow some space in the newsletter (about a 2" x 2" space on an 8 1/2 x 11 sheet) for advertisers. He's asked us (as a favor) to help him justify a cost. My initial feeling is that he should charge whatever advertisers would pay. Can you suggest any means of comparison?

The Media Guru Answers(Monday, November 30, 1998 ):
The value has to be based on the concept, not the audience. Charging even $25 for an ad creates a cost per thousand audience of $83, which is quite high by ordinary media standards.

Assuming all recipients pay for or at least actively request the fax, and since you have good knowledge of the activities and interests of audience, it should be very valuable to the right advertiser. You might be able to get $100 - $200, by direct response standards.


Friday, November 06, 1998 #2130
Dear Guru, Thanks for your service.What are the terms associated with online media and its defination(like cpm,CTR etc).What are the factors Media Planners consider when they plan for Online campaign.

The Media Guru Answers(Friday, November 06, 1998 ):
For terms visit the Guru's web glossary

Considerations:

Net or gross audience.

Costs

Cost per net or gross audience, cost per response, cost per sale, cost per dollar revenue.

Environment

These are mostly the same as a traditional media planners considerations, but measurements and terms are different


Wednesday, October 21, 1998 #2105
Dear Guru, Can you recommend good sources for learning more about banner media advertising. I'm looking for sources that explain the media concepts/terms related to web media buying (page views, CPC, cpm, impressions and that will educate on how to make the most of web banner campaigns. Please help!!! Thanks, Kathleen

The Media Guru Answers(Wednesday, October 21, 1998 ):
See the Guru's web glossary, AMIC's publisher's article, Pricing Web Site Advertising; A Media Buyer's View

several of the Guru's friends' Think Pieces,

and check the books in the AMIC Bookstore (in association with Amazon.com) on the "internet" shelf.


Wednesday, October 14, 1998 #2094
Dear Guru! Could you explain the speciality of billboard advertising, focusing on the time length of the campaign. I suppose there is an optimal length of a campaign, and after that the reach is not growing (or just a little). In the European market we can find 1 week 2 week and 1 month long campaign too. Are there any available research on this topic? Thanks Tamas

The Media Guru Answers(Thursday, October 15, 1998 ):
In the U.S., an outdoor campaign is usually bought as a 25, 50 or 100 "showing". "Showing" means GRP's per day, based on camparing DEC (daily effective circulation) to the population universe.

A "50 showing" outdoor campaign will achieve 85% or better reach in one month, so obviously there cannot be much reach growth from there. A 25 showing isn't much lower and a 100 showing isn't much higher.

Campaigns usually run 3 or more months. The cost of production typically works against less than 30 day postings.

Even though outdoor delivers very high reach at low cpm, in the Guru's experience it is rarely employed just for this reach building, because it offers limited message length and detail.

Harris Donovan of Canada has an Outdoor Reach and Frequency system.


Tuesday, October 13, 1998 #2093
I am a novice at media planning. Recently I acquired a job as a media planner due to my overall advertising experience. I've been assigned a medical account with a focus on orthopedic surgeons and the media type is print. I've been instructed to base my analysis for publication recomendation on cpm. The number of orthopedic publications is limited but I feel there should be more to my analysis than cpm. Can you tell me what other types of analysis I can do and how to accomplish them?

The Media Guru Answers(Thursday, October 15, 1998 ):
If you have titles that are not purely for orthopedists, then you can compare their compostion -- the percentage of audience who are orthopedists. This indicates their focus on your target.

If you have the specialized physician audience studies, i.e. PERQ's FOCUS, you can compare audience duplication between titles and develop reach and frequency for various schedules of the publications you might use.

The same study might tell you which titles have more audience members who purchase what you are advertising.

An editorial analysis might show that some titles have more coverage of the category of the product or service which you are advertising.

An advertising analysis might show which books get more of your competitors' business.


Sunday, September 13, 1998 #2041
We're about to take our science-fiction website commercial with it's own domain. We have started having inquiries about advertising and sponsorship of different sections. My question is how do I know what a fair price would be to charge for these? Right now we average 8,000 hits per month with little advertising. Once we launch the new domain, we are also launching an aggressive ad campaign so expect that number to multiply rapidly. Our plans for our site can be viewed at www.ao.net/~tachycon/scifispace.html. We plan to launch the end of Sept. Thanks for the help.

The Media Guru Answers(Wednesday, September 16, 1998 ):
The Guru trusts that you mean 8000 "page views" and not literally 8000 hits, which are server log entries and may overstate pages (impressions) by a factor of 10 or more.

cost per thousand impressions on the web can run from $5.00 to $ 75.00 depending on how targeted the audience is. The lowest cpms are ususally found on the biggest audience. least targeted sites, such as the major search engines. The higher prices will be on very targeted business-to-business site.

This would price your advertising at $40 to $600 per month with 8000 page loads. You would most likely not be valued - for targetting - at better than $30 cpm, and at 8000 impressions, not be very interesting to most major advertisers. On the other hand, the sort of vendor who would attend your conventions might be quite interested.


Saturday, August 29, 1998 #2018
cpm's for various mediums

The Media Guru Answers(Wednesday, September 02, 1998 ):
There are many sources for such comparisons. Visit AMIC's Rates, Dates and Data


Friday, August 21, 1998 #2009
I'm having a difficult time trying to find any material that will teach me how to use CPP when buying network and spot radio. My contacts in the advertsing field tell me that they learned how to use this formula through experience. I know the formula for CPP. However, is there any resource that will show me how to implement CPP when buying network and spot radio? Something that will show me some shortcuts or maybe some examples? Thanks again for your help.

The Media Guru Answers(Friday, August 21, 1998 ):
Once you know how to calculate CPP, its uses are pretty straightforward.
  • CPP is an efficiency indicator. Media proposals you are considering can be ranked from lowest CPP to highest if efficency is a goal
  • CPP can be a goal you give to sales people, e.g. "I'm buying a $100 Women 18-49 CPP, what avails do you have at that pricing?"
  • CPP can be weighted with other factors like rating size or cume
  • CPP can be used to caluculate cpm when the universe is known: CPP divided by 1% of the universe expressed in thousands yields cpm
    (this is only valid when rating and audience in thousands come from the same geography as they do in Network. In spot, where you may use a metro rating but TSA thousands , the formula is imprecise at best)
  • CPP can be used as a bottom line number to compare possible schedules you are putting together

Remember - never average CPPs themselves; total the costs and total the ratings of schedules and calculate the bottom line CPP from the totals.


Sunday, August 02, 1998 #1986
I’m looking to compare average household cpms across the following television segments: Broadcast Network Broadcast National Spot Broadcast Local Cable Network Cable National Spot Local Cable Can you help me with these figures or point me in he right direction on where I can find this data?

The Media Guru Answers(Sunday, August 02, 1998 ):
AdWeek's Marketer's Guide to Media might have all of these media but probably not local or spot cable.

These latter two are

  1. Sold in too many ways to average sensibly and
  2. Too often priced based on costs of selling and or integration, rather than audience.

To explain:

Local spot cable can be bought as part of a regional buy, in a DMA interconnect or system by system within a DMA. Often, buying one quarter of a DMA on a given network is more costly than the interconnect because too many individual systems need to individually load and swith your commercial.


Tuesday, July 21, 1998 #1966
Sports radio networks rarely, if ever, give cpms and TRPs for the proposals presented. When asked to provide this info, they cop-out saying "well, other agencies (i.e., JWT, Bozell, BBDO) buy our network." I understand there is a premium to associate yourself with a high profile sports team, but at what cost? Without having resources to evaluate each and every radio station in the network, how can I accurately present these proposals to my clients? Currently, I figure: total market CPP x average rating x number of spots x number of games scheduled + added value = total package value. Am I accurate?

The Media Guru Answers(Wednesday, July 22, 1998 ):
When the Guru buys sports neworks, he gets audience and efficiency data. If you are saying that the networks give national data but not individual market rating, that's a somewhat different issue.If you are buying a team, its value is probably in its home market. If a network is only sold in total, what will you gain by identifying a weak station? If you have all the data to execute your formula, you should do fine.


Saturday, July 11, 1998 #1944
Dear Guru, Thank you for your incredible help! I have to fulfill an RFP for an online ad campaign. The agency requested avails, SOV and a proposal. Please explain SOV in the online context. I understand avails to be available impressions.

The Media Guru Answers(Saturday, July 11, 1998 ):
"Avails" in the context of a media proposal typically means a listing of the advertising positions offered. In broadcast, it may describe dayparts and programs available for sale with audience and pricing specified.

The term seems a bit of a stretch in on-line, but could describe a lsiting of available banner sizes, positions and rotations, with impressions and prices.

"SOV" does not seem to fit here unless it is meant to express the portion of the site's total available impressions delivered by each available advertising opportunity in the "avails."

The Guru's observation has been that people operating web sites and managing their advertising have not come from other media or even agency backgrounds. It would not seem useful to try to impose broadcast terminology on new electronic media, except for those terms common to all other media, such as "impressions," "GRP," or "cpm."


Friday, July 03, 1998 #1933
DEAR GURU, THANKS FOR YOUR SERVICE.HOW IS cost per thousand PRICING IS CALCULATED IN ONLINE MEDIUM.WHAT ARE THE CRITERIA GO TO DETERMINE CPT PRICING METHODS.WHAT ARE THE POPULAR SITES WHICH CHARGE ADVERTISERS ON CPT METHOD.

The Media Guru Answers(Friday, July 03, 1998 ):
The Guru has discussed this issue many times. If you go back to the Guru Page and select Guru Archives and do an advanced search for this coding:

(web | internet | online)&(price | "cost per thousand" | pricing | cpm),

you will find 25 Guru replies on your topic.


Thursday, June 25, 1998 #1923
Guru, I work for an online interactive media group (Vickers and Benson). We are planning a large campaign for a major Canadian bank. One problem however is trying to find the value of a high priced cpm. If I'm going to pay $85cpm on AOL can I be certain that it will result in higher clickthroughs? Do high cpm's mean good clickthrough rates? More imprtantly, how does one determine cpm value? If I concentrate my budget on a few high-end sites am I bound to get a higher clickthrough % than several low-cost cpm? Thakx in adavnce

The Media Guru Answers(Friday, June 26, 1998 ):
Absolutely not! There is no inherent, reliable correlation of web cpm with clickthrough.

Clickthrough is a function of two things:

  • Placing your banner on a site where the visitors are likely to be interested in what you are advertising, and
  • Making your banner interesting enough to attract clicks.
In the first case, it is between you and the seller to determine if the right audience will see the banner. One way is to attach the banner to specific key words in search engines or site searches. Another is to select sites with very targeted content. The former can be far less expensive cpm-wise than the latter. Often high-end cpms are charged for highly targeted sites which have smaller, but more select audiences.

If you are looking for clickthrough guarantess, some sites are sold on a cost-per-click basis, and you should ask for that if the seller insists his audience will deliver high clickthrough.

Becasue the real burden of attracting clicks is born by the ad copy and also depends on how fresh it is to the eyes of the prospect, the Guru thinks selling cost-per-click is a sucker bet for a web publisher.


Thursday, June 25, 1998 #1922
DEAR GURU, THANKS A LOT FOR YOUR SERVICE.SPONSORSHIP IS NOW A POPULAR MODE OF GETTING ADVT IN ONLINE.GENERALLY,WHAT SORT OF DEALS DO THE SPONSORS AND THE SITE OWNERS HAVE?.HOW IS THE SPONSORSHIP PRICED NOW IN ONLINE?.

The Media Guru Answers(Friday, June 26, 1998 ):
Sponsorship is a vague term in online thus far.

It could mean a multi-ad presence all around a web site, or an "ownership" of of a special area of a site or a special created site under the umbrella of a larger site. In the first two situations, the Guru sees pricing based on a cpm multiple. In the third situation, there is also likley to be a creative/production charge.


Tuesday, June 02, 1998 #1881
I am looking for a range of cpms for Internet advertising. My media director claims they fall between $5 and $30, I believe them to be slightly higher. She is also claiming that a huge number of advertisers are forcing sites, etc to sell by clickthrus, I don't buy in to that. Is there any place where I can get statistics on this?

The Media Guru Answers(Tuesday, June 02, 1998 ):
On the largest, general audience sites, for significant orders, $5 - $30 is a reasonable range. For smaller, but more targeted sites with specialized audiences, up to $80 or more is to be expected. Special positions, linking to search keywords, etc. can call for premium pricing over the site's base cpm.


Friday, May 29, 1998 #1616
I really appreciate this section of your web site. It is a great idea! I deal with network radio. We produce 2-minute radio vignettes for advertisers. Each vignette includes sixty- seconds of entertaining new content that relates to the advertiser's product and sixty-seconds for their commercial. The content of each feature is designed to help to sell the product. When trying to determine the CPP for a 2-minute vignette like ours, would you consider the vignette to be a 2-minute commercial (two :60s) or would you consider each vignette to only contain one sixty-second commercial?

The Media Guru Answers(Tuesday, June 02, 1998 ):
CPP is a simple calculation. Divide cost by rating. Length is not a factor. Sometimes buyers will create a special cpm adjustment based on length to compare different units.

If your content is a message about the specific product, you could count the whole 120 seconds. This makes no difference, except in the buyer's special case, mentioned above. Or, you can treat it as two :60's, which does make a difference, because the cost is then divided between the two commercials.

If, on the other hand, it is just related content, such as the history of shoe shines, to accompany a shoe polish commercial, then it is just a supportive environment, and not typically counted as a commercial message.


Saturday, May 23, 1998 #1601
how to price online advertising,especially banner advts.

The Media Guru Answers(Saturday, May 23, 1998 ):
cpm impressions pricing runs from $8 to $80 depending on audience "quality" and targeting, but see the Guru's recent answer to this question below, on May 11.


Thursday, May 21, 1998 #1600
Gurus, thanks for the extraordinary service and the opportunity to bounce ideas/ask questions of media experts. My question has to do with screen advertising...those sometimes tacky slides shown in movie theatres before the previews, before the movie. I know one needs to consider the audience size, demographics and psychographics (dictated by the movie shown). Do you have any input or research on the effectiveness of this kind of advertising? Anything on the environment (actual, plus the advertising environment) in which the messages are presented? Any guidelines as regards pricing? Thanks!

The Media Guru Answers(Thursday, May 21, 1998 ):
In the Guru's experience, the "tacky slides" are likely to be ads by small, local advertisers. Tracking of results by these advertisers is not likley to ne available. On the other hand, the full scale, filmed commercials are usually handled by major reps, like Cinespot (212-679-2000) or Screenvision (212-752-5744), who would have research data available.

These are also the best resources for price estimates. The Guru would anticipate a broad target cpm in the $20 range, depending on several variables.


Wednesday, May 20, 1998 #1599
Dear Media Guru, I am developing and producing a short radio feature for barter syndication. On what basis do syndicators typically set their ad rates? I realize that the rates may be highly negotiable but are there any common formulas (based on cpm, CPP or some other data) used by syndicators to arrive at an "asking price"? Also, can you recommend any resources helpful in developing and marketing syndicated radio programming? Thanks for your help.

The Media Guru Answers(Wednesday, May 20, 1998 ):
Some of the issues in syndicated programming pricing are:
  • cpm or CPP better than spot radio pricing for similar audience size
  • Possible premium for an attractive program environment.
  • %U.S. coverage

There are numerous radio syndication companies, handling everything from Rush Limbaugh to obscure musical formats. One good way to solicit response from -- or tips about -- the right resource would be to post a message about your program to the "Radio Media" discussion list. Send your request to join the discussion to RADIO-MEDIA@adsong.com


Monday, May 11, 1998 #1588
Is this any accepted measurement standard in place to effectively price web-page advertising? Also, has any service been able to obtain more direct response information, re:web-site hyperlinks, other than just counting "hits"?

The Media Guru Answers(Monday, May 11, 1998 ):
Web (banner) advertising is typically priced in one of 4 ways:
  • cpm- (cost per thousand ad exposures)
  • Flat fee ( usually calculated, by the seller, and compared, by the buyer, on an exposure basis)
  • Cost per click ( based on the number of times the banner gets clicked by a visitor to the site where it is displayed)
    This is not a very reasonable method, since the responsibility for making the copy attractive enough to stimulate clicks and fresh enough to keep stimulating clicks properly belongs with the advertiser, not the medium
  • Transactional ( where the payments to the site are based on the visitor's action when arriving at the advertiser's site; including making a purchase, requesting information, or navigating within the advertiser's site)

"Nobody" really counts "hits" anymore. Page exposures of the site and exposures of ads are the coin of the realm.

The latter two models above are direct response measures.


Thursday, May 07, 1998 #1584
1.how to achieve better reach in lesser media budget? 2.please provide some tips on clever media planning. 3.who is best media planner as per you and why?

The Media Guru Answers(Friday, May 08, 1998 ):
1. If reach is the only concern then it is usually easy to find media with higher reach per dollar. For example, outdoor delivers enormous reach and has the lowest cpm of all traditional media.

Smaller units also stretch budgets without losing reach. Fractional pages or TV :15's instead of :30's, radio :30's instead of :60s also help.

But of course, there are other, copy effectiveness and impact issues associated with these media choices. There is always a trade off; you can't get more reach in the same media for less money, unless you can persuade the sellers to lower the prices.

2. Clever media planning includes some of the ideas above, but also requires a planner to sell the ideas for their benefits, and get past the negatives. The goal of media planning is to deliver on the marketing objectives.

"Clever" is doing it in non-standard ways. Can you persuade the media to create special programming which ties into your campaign? Can you show the media a benefit to them in carrying your ads so that they want to resduce the price or give more than the usual value added elements?

If the Guru has one real tip on clever planning it is: Learn to use and understand the research which is available. Few in media today do. An knowledge of what research is available and how to apply it to media decision making will make a planner stand out, and appear clever and creative, because that planner, in fact, will be so.

3. The Guru himself is the best planner he knows. The nature of the media planner's position in the ad business is to be subordinated to creative and account services. There is little chance for planners to become known beyond their agencies. No doubt the "best media planner" lurks in unsung obscurity in a hundred agencies.


Thursday, April 30, 1998 #1578
what is the mathematical relationship between the cpp and cpm, is there any formula linking this two concepts?

The Media Guru Answers(Thursday, April 30, 1998 ):
CPP (Cost Per rating Point) is the cost of a number of media impressions equalling one per cent of a given population group (the specified "target"), as in Women 18-49 CPP.

cpm is the cost of 1000 target media impressions.

Therefore, the mathematical relationship depends on the number of thousands of people who equal one percent the target group.

For example, suppose there are one million women 18-49 in a market, and a radio spot has an audience of 20,000 women 18-49 at a price of $50.

The rating points generated by the spot are 2.0

(20,000 divided by 1,000,000).

The CPP is $25

($50 divided by 2.0)

The cpm is $2.50

($50 divided by 20[thousands])

Since CPP is the cost of impressions equal to 1% of the population, the cpm to CPP relationship is:

CPP divided by 1% of the population in thousands = cpm

In this case, $25 CPP divided by 10 [thousand]= $2.50 cpm

or

cpm times 1% of the population in thousands = CPP

While this works perfectly for national media, it can be tricky in local media unless geography is tightly defined. I.e. a broadcast cpm is usually defined as being on a Metro Area or DMA basis. cpm though, is often based on all impressions generated, even if outside the basic geography. Common geographic population definitions are essential to the accuracy of the formulas.


Tuesday, March 17, 1998 #1533
I am starting an online business soon, and I am perplexed as to what methods to utilize with our limited budget of $5000 per month. I want to initially do my advertising exclusively on the net, and I have been looking into using an interactive ad agency. What kind of targeted traffic should I expect for my budget, and what methods will an agency use to create traffic, besides search engine listings and optimization?

The Media Guru Answers(Friday, March 20, 1998 ):
$5000 might buy just a month of banner display on a major, general audience website. at $10 per thousand impressions. Therefore, you would have 500,000 impressions and perhaps click-thru 5,000 - 10,000 traffic to your site. Of this traffic, you might get 25 - 100 sales, depending on what you're selling.

Other, more targeted sites might sell for less out of pocket, at a higher cpm (e.g $25-$100), but ultimately generate more sales ROI because their audience is more likley to be interested in your product.

Another technique that an agency might use is a revenue sharing model, wherein sites which send you customers earn a share of your revenue from visitors "referred" by their site.


Friday, February 06, 1998 #1499
In the interactive media source (SRDS) they list rates in net cpm and gross cpm. What is the difference in the two?

The Media Guru Answers(Friday, February 06, 1998 ):
Net is 85% of gross, to allow for the once "standard" 15% agency commission.

Net is the final amount received by the media vendor.


Thursday, October 23, 1997 #1440
Hi Guru- 1) Briefly, what does CPP stand for? 2) Have you seen any good sources that compare the costs (cpm) of various media (billboard, banners, radio, newspaper etc)?

The Media Guru Answers(Thursday, October 23, 1997 ):
CPP is Cost Per Point. "Point" refers to Rating Points, the sum of the ratings of the ads in a schedule. So cost per point is schedule cost divided by number of rating points.

CPP is also used in describing the average cost of media or programs.

MediaWeek publishes a handy guide to media costs. SQAD publishes guides to various broadcast media.


Tuesday, October 14, 1997 #1431
I want to place some standard banner advertising. What is the best pricing model to use for banner placements on search engines and other sites? I've been getting cpm prices from the search engines, but I've been told to negotiate page views or visits.

The Media Guru Answers(Tuesday, October 14, 1997 ):
There are three basic pricing models in play at present, cpm, click-thru, and transaction based.

In click-thru, you pay for each time someone clicks on your banner to be taken to your site or full ad.

In transaction-based, if your site actually sells something, like books or cd's you pay a share of sales to the site which "referred" the customer.

"cpm" typically means you pay a given "cost-per-thousand" exposures of your banner. This is not different than page views or visits. The thousands of exposures in the calculation are page views which include your banner, not thousands of impressions of the site.

If you think a site intends to charge by their site exposures instead of your ad exposures, you should get written clarification, and then do insist on paying according to your banner exposures.


Wednesday, August 20, 1997 #1396
Who puts out a good radio and tv buying training book? How do I go about getting a hold of this information?

The Media Guru Answers(Thursday, August 21, 1997 ):
At Amazon Books, the Guru found Ntc Business Books' Introduction to Advertising Media : Research, Planning, and Buying by Jim Surmanek, who also has one of the standard media planning texts.

The same publisher also offers The Media Handbook / A Complete Guide to Advertising, Media Selection, Planning, Research & Budgeting by Helen E. Katz

The old standard media text Advertising Media Planning by Jack Z. Sissors, Lincoln Bumba probably gives less attention to buying.

There are many more books about planning than buying. Probably because (the Guru believes) broadcast buying can't be learned from a book. After the basic facts are digested: understanding ratings, cpm, programming and forecasting, it's people skills and technique that matter.


Wednesday, June 25, 1997 #1370
Dear Guru, I have a fundamental question for you. As media planners we recognise the need to look beyond numbers. How do you factor in the context in which the media is consumed,i.e. the frame of mind or mindset in which a program is viewed or a magazine read and the content of the medium, i.e. the edit environment, or the surrounding advertising. Is there any international learning on this subject? I am looking for research in this area, and examples of application of the same. Are there any brands you are aware of, that have consciously used such a philosophy in guiding their media plans? Thanks

The Media Guru Answers(Wednesday, June 25, 1997 ):
This "factoring" is the art of media planning. If it were achieveable by application of established values, media planning would all be done by computers and there would be little use for media planners.

Expressing a Brand's synergy with specific media placements, and expressing the interaction of that synergy with the marketing situation and goals, then using those ideas to "sell" a plan are the art and craft of media planning filtered through experience.

The writing of plans for many brands uses these techniques. Major package goods companies have long used general factors for weighting media, based on measured attentiveness, average recall scores, etc.

About 12 years ago a company called TAA developed a more complex measure for evaluating attentiveness and attitude toward programs, as an added way to evaluate programs, beyond cpm and similar, simple counts. It went out of business fairly quickly.

Two research compilations the Guru mentions regularly, at the Advertising Research Foundation and the Newsweek Media Research Index are the best sources to consult for published research in this area.


Tuesday, May 13, 1997 #1345
Since "PRICING WEB SITE ADVERTISING" was first published (it's not dated but I'm guessing '96?) have there been any 'advances' in the methodology for pricing web advertising beyond either the ModemMedia model or the alternatives suggested? I am not an advertising professional (and they said us geeks use obscure achronyms?), and I am also looking for a concise FAQ type document that might explain the formulae and jargon (cpm, Frequency, Impressions in your excellent on-line dictionary and Depth which isn't) within the context of web advertising. Are there and other specific media terms (new or old) that are pertinent in a web advertising context (I got page view and hits)? Thank you.

The Media Guru Answers(Wednesday, May 14, 1997 ):
The AMIC article was wriiten in the latter part of 1995, not long after the appearance of the Internet World May 1995 article which it discusses.

By the way, please be aware that AMIC has added a new area, called I-Trac, which discusses web terms and measurement and which includes a Web Glossary

In terms of newer thinking, consider the critqued article's central concepts:

1.Determine the ratio of hits between the web site's log and the number of file "hits" that make up the page carrying the ad. Divide logged hits by number of hits making up the page to calculate what we can call "page views." Then call page views "reach."

Since then, the software which interprets log files has developed so that it can distinguish pure "hits" from the more relevant page requests or "page views" . Hits today is taken to refer to any line in a log file, even errors. (Ad) Page requests is the analog to traditional media's "impressions".

2.Determine repeat viewing of that page and call that frequency.

We more commonly use "frequency" in terms of whole campaigns

3.Determine the success of viewings of that billboard ad in moving readers to the actual web site and call that "depth."

This measurement concept has come to be called "click-through" or ad click rate. Depth was a term only used as defined in this Internet World article.

Today pricing is generally based on cost per thousand (cpm) impressions. Rates seem to range from $15 cpm for the broadest, general audience sites' rotating banners, through $50 or so for search engines' keyword banners up to $100+ for "premium audience" on highly targeted business to business web sites. Another pricing model growing in popularity is "price per click," which charges for each vistor who clicks on a banner. The problem here is that the site hosting the banner must rely on the creative to generate viewr response -- it isn't all the effect of the web site itself. Therre is considerable literature today about how to influence clicks, as well as a growing body of research which argues for the awareness building effects of the banners, regardless of clicking response. Finally, simple revenue based models are the rising concept. In this, sites hosting banners are compensated with a portion of the transaction revenue generated by web surfers they send to retail type sites. An offshoot of this is a model for ad placement agency compensation based on the revenue generated by their placement of ads at recommended sites.


Thursday, March 20, 1997 #1011
Hi, where could I find answers to the following questions:
* What are the most used vehicles to advertise on the net?
* What are the costs to advertise through these vehicles?
* Are there any audience rates availabel for these vehicles?
* What are the rules and regulations to advertise on the net?
* What is the effectiveness of advertising on the net?

The Media Guru Answers(Friday, March 21, 1997 ):
The Guru could write a book in answer to these questions.

  • Top sites:Jupiter Communications is the best accepted ad spending tracker, and this link presently gives 1996 total billings for the top 10 sites.
  • Costs to advertise:
    Webtrack is one source of web advertising prices. (read with care, sometimes cpm is listed as if it were a total price)
    FocaLinkprovides cost as well as content/audience information.
  • Audience:
    PC-Meter reports audience for hundreds of sites.
    MRI and Simmons also report web site audiences.
  • Rules: It's still the Wild, Wild, Web as far as regulations go. There is some standardization in agreement to definitions on "impressions" as a basis for ad pricing according to cost-per-thousand impressions. and ad pricing per banner "click-through." There is also some ad size standardization thanks to CASIE and the IAB. Details of these sizes and definitions will be listed in AMICs new I-Trac area. Meanwhile, see the CASIE Definitions and CASIE Standards for banners.
  • Ad effectiveness: Ad effectivenss will vary by ad type and appropriateness of placement. The same could be said for any medium. There is a CASIE Research Compendium which offers several studies on the topic.


Sunday, March 09, 1997 #1309
cpm Audience $/(000)of American Baby Magazine vs. cpm of The Family Channels American Baby?

The Media Guru Answers(Thursday, April 24, 1997 ):
You need to specify an audience demographic to compare, of course. These two media themselves would then be able to supply the information you need.


Tuesday, February 04, 1997 #1057
What is the best way to evaluate outdoor - qualitatively and quantitatively? Any available research?

The Media Guru Answers(Sunday, February 09, 1997 ):
In the US, outdoor is typically packaged in "showings" of 25 / 50 / 100 which generally mean 25 / 50 / or 100 grps per day, that is, a selection of locations with a total daily effective circulation equal to 25 or 50 or 100% of the adult population of the market. (demographic data is often very approximate).

Outdoor delivers very high reaches at low cpms. Message lengths are of course quite limited.

Barring specific creative testing or pre-post attitude awareness and usage tracking, evaluation is very much a judgement call based on creative and your communications goals.


Thursday, January 23, 1997 #1070
is there any place in this program where I can find tv cable rates for a college project?

The Media Guru Answers(Saturday, January 25, 1997 ):
The Guru says:

Go to AMIC's Rates, Dates and Data TV cpms section


Tuesday, December 03, 1996 #1100
Hi, Media Guru! Thank you for your kind answer to my previous question.Your answer was really helpful to me.

Currently, I am looking for information about American Network TV advertising rates.If you know any source that I can find the information, please let me know.Thank you very much.

The Media Guru Answers(Wednesday, December 04, 1996 ):
MediaDynamics cost per thousand Projections are available underRates and Dateson AMIC.


Tuesday, November 05, 1996 #1113
I developed and launched a relatively successful websitethat reaches a very specific audience of users. Demographicshave been developed through an online survey, as well asdetailed "hit" statistics provided by the ISP. Althoughthe audience is relatively small compared to other typesof media, it comprises a highly desirable consumer group.How can one calculate the tangible ($$$) value of banneradvertising on such a site (to companies who wish to reachthis specific audience?

The Media Guru Answers(Wednesday, November 06, 1996 ):
There is considerable controversy regarding the value of Banners. If they are merely logo's which, when clicked take the vistor to the spoonsor's own site or an actual ad. But your question goes to the next stage, the relative value of a highly selective but small audience. The Guru recommends checking the pricing of space in magazines which are selective for the same audience as your site, and comparing that pricing to prices of general audience magazines. The comparison should be on a cost-per-thousand-audience basis, which will allow you to price your site's visitors or banner-clicks according to the same index versus reported general audience sites such as Netscape or Yahoo.


Tuesday, October 22, 1996 #1120
I am a consultant to a TV station. Recently most agencies have adopted one or another Media Planning software. We have tried to undersatand what type of optimizers they have and what effect in their decisions may have. For example one that uses integer programming seems to benefit high GRP programmes while others low cost and low audiences. How does the type of optimizer influence the plan? Thank you

The Media Guru Answers(Wednesday, October 23, 1996 ):
Optimizers must be set to Optimize something. It may be pure reach, reach at a given level of frequency, reach within a specific budget,etc. Usually some form of reach is in the goal, because other considerations like cpm or GRPs are simple arithmetic, while reach involves more complex computer models.

The reach models must be based on some measurement of "actual" schedules to be worth anything at all. If each optimizer is merely based on some programmer's opinion of how audience accumulates, there is no way to predict results without owning a copy of the program.

When reach within budget is the issue, it is possible forlow cost/low rated programs to be preferred if theydeliver so much more gross audience that even at low rates of net accumulation, the total reach can be more than quicker 'cuming. high-rated schedules.


Tuesday, October 08, 1996 #1133
I wonder if you could enlighten me on your thoughts onthe following: currently, within our market, we lookat cost per point (CPP) for TV. This has been the casefor a number of years now. Recently, however, certainTV stations have been trying to encourage the use ofcost per thousand (CPT). Is there any right or wrongway of looking at a cost measurement for TV?My thinking is that CPT does not prove to be stablewhen measured across a time period, simply becauseuniverse sizes change over time (thousands do increasebut not necessariily the penetration into a market).Therefore CPT could be used when measuring off the sameuniverse size, but is not feasible in showing trendsover different years using different universe sizes.CPT works to the advantage of the media owners as it isseen as much less of an amount than a CPP is (at themoment)???Please help.

The Media Guru Answers(Wednesday, October 09, 1996 ):
The issues you raise with the use of CPT as against CPP are real, particularly in that when you have people meter data and the universes are changing they will affect the 'thousands' calculated conceivably more than the change in the audience itself.

In people meter panels the universe can vary if it does not form part of the weighting cells.

In addition as a rating using people meter data is a time weighted average it is not strictly speaking possible to convert them into whole 'people'.

Selling or buying TV based on CPT derived from respondent level people meter data would be fraught with hidden difficulties for both the users and the TV stations.

Note that this question was posed about the South African market.


Tuesday, June 25, 1996 #1191
In ranking radio station, should you rank thenagainst average quarter house rating or is it better torank against cume and why? Thank Media Guru

The Media Guru Answers(Tuesday, June 25, 1996 ):
Rankings are usually done against AQH ("Average Quarter Hour" -- there are no household measurements in radio ratings)

One reason is that these numbers have a correspondence with cost per point and cpm, which are other typical evaluation standards for radio buying.

Depneding on your overall goal rankings on cume may or may not be useful. If a particular station is trying to convince you to use cume rankings, it -- no doubt -- fares better on cume than rating.

However, if you are buying to a reach goal, buying stations in order of cume or cume/efficiency may be the best way to acheive your reach goal for the least dollars, rather than by amassing GRP in order of cost per point. This is especiallytrue if you are planning to buy many spots on a station. In that case, the cume better reflects your reach potential. Conversely,if you are buying very few spots on a station, the AQH will betterreflect the situation.


Thursday, June 20, 1996 #1195
How do I maximize distribution of my message with a minimum amount of advertising dollars?

The Media Guru Answers(Friday, June 21, 1996 ):
You are asking for an entire course in media planning.The simplest answer is to find the lowest cpm medium for your target group in the geographic area you want to cover.

This, of course, raises numerous goal-setting questions and leaves out evaluation of individual media vehicle effectivenss.

Simple answer #2: go to a media professional. His/her fee will be easily offset by the added value of a properly structered plan.


Sunday, March 17, 1996 #1261
I am involved with a company that is attempting to establish a series of what we call "Megascreens" throughout New Zealand. The Megascreen is a large (9-10 feet diagonal) videowall type screen made up of flat screen cubes. The quality of the picture is excellent, much better than the equivalent stack of TV monitors. We can use TV signal, Super VHS video tape or computer graphic generated ads. One of the problems we are coming up against is that potential advertisers are asking for data on the effectiveness of the Megascreen in terms of cpm's and the like. We have found this sort of data extremely difficult to get hold of for what is a relatively new media option. Do you have any suggestions on if any of this data is available ex the US, or what sort of calculation we should be offering prospective advertisers?

The Media Guru Answers(Monday, March 18, 1996 ):
The key to your question is getting an audience (traffic) count for your Megascreens. This is more a factor of the specific location in which it is placed than the nature of the medium itself. You need to measure the number of people paasing the sites where your screens are. Then cpm is simply the cost divided by the traffic count.


Monday, February 19, 1996 #1757
Television's (network, spot are cable) and radio's (network and spot) advertising costs are typically measured in CPP's (cost per rating points). On the other hand, Newspapers' and magazine's advertising costs are measured in cpm's (cost per thousand). It seems the Internet is moving towards the cpm model and I have no idea how "out of home" or Direct Mail are measured. Apples to apples, based on cpm, how do these mediums compare on cost? -- how about ROI?

The Media Guru Answers(Thursday, February 22, 1996 ):
First, understand that CPP and cpm are just cost indices rather than "measures." cpm (cost per thousand audience impressions) may be converted easily to CPP (cost per percentage point of population universe):

CPP = cpm x universe in thousands x .01

or

cpm = CPP / (.01 x universe in thousands)

cpm is simpler to deal with because we only need to know the audience exposed, a figure just beginning to be reported on the internet. CPP requires us to know a "universe," the number of people in the whole category under discussion. For the internet, or more specifically the WWW, where ads are usually found, universe is a hotly debated question. Is it the number of people with computers and modems or the number of people with the theoretical possibility to browse the web (an ISP and browser software) or the number of people who actually ever do use the Web? Even if we pick one of these, there are radically varying research estimates of the size of these possible universes.

If we decide to just use the total population as a universe for internet measurement, the ratings are agonizingly small, and we are still working toward how to define the rating. In print, no matter how often a reader picks up the same issue of a magazine, he or she only counts once in that issues impressions or rating. But website accesses are usually counting multiple weekly visits without the ability to distinguish repeats of the same viewer. There is not yet any common ground in pricing to talk of averages. There may be over 100,000 commercial sites, more than all the tv, radio and print vehicles put together.

The comparison you suggest between all media cpms also changes as we define which demographic to consider. TV has established averages to consider and companies like Spot Quotations and Data SQAD@ix.netcom.com publish these cpm/cpp.

Print may vary from $5 to over $200 cpm depending on selectivity of audience and total circulation.

ROI can't be discussed without knowing the goals and depends on ad content, other marketing efforts and how revenue is measured. Web site development and web ads may be meant to sell product, build image or just bring viewers to sites. Web advertising needs to be evaluated against very goal specific potential and possibility.


Tuesday, January 30, 1996 #1770
If a media vehicle is delivering 3.5 million impressions per month, what rate should I pay for advertising if I want a $20 cpm?

The Media Guru Answers(Friday, February 02, 1996 ):
cpm = $cost / thousands of impressions
or
$20 = $cost / 3500
or
$20 x 3500 = $70,000


Friday, January 12, 1996 #1786
Internet Web Advertising Rates for banner sponsorships have no pricing model standards. Gateway properties (Excite/Lycos/Netscape/Yahoo) with untargeted audiences base their rates on cpm ranges of 20-50. I need to evaluate prices on regionally focused web sites: untargeted & targeted non-search engine properties. Can you lend any assistance?

The Media Guru Answers(Friday, February 02, 1996 ):
cpms of $20-50 for unselective audiences seem high. Some thoughts on web site banner cpm are offered in PRICING WEB SITE ADVERTISING: The Media Buyers' View


Monday, January 08, 1996 #1796
At what point does the efficiency of buying local cable diminish so that national cable is a more effective option?

The Media Guru Answers(Friday, February 02, 1996 ):
On an efficiency basis, local cable is almost never superior to national. The decision point is more likely to be out of pocket cost, though the Guru has seen instances of the same cable :30's priced at $50 nationally versus $250 in New York.

The analysis also depends on how large an area is useful to the marketer. If the whole country is geographically acceptable as potential consumers, then the only question might be how far will the budget stretch in delivering "acceptable" levels of weight. If only certain geographies are within the distribution of the advertiser, an analysis of the useful audience within the national cable coverage is needed before the efficiency comparison can be made.

There is no %US "rule of thumb". Local cable is variable enough in its cpm ranges that there often is no relationship of market size to cost.


Friday, August 25, 1995 #1846
How can I obtain historic, actual radio costs for A 18-49, over the last ten years? Top twenty ADI's?

The Media Guru Answers(Friday, August 25, 1995 ):
There are a few approaches. Ad trade publications publish cpp/cpm trends annually. Libraries would have back copies. General media cost guides like AdWeek's Marketers Guide to Media which predict costs can be used retrospectively to examine cost trends.

Specific cost guide sources such as SQAD (Spot Quotations and Data) which closely follow marketplace costs (but don't post analyze) can look back at cost history for a probably nominal charge.


Tuesday, March 28, 1995 #1862
Ziff is on [the Net] with 10 mags offering "marketing positions", the NYTimes has 3, maybe 6 positions, Prodigy has an offering. What is the cpm range and what qualatative considerations are being used to justify premium costs?

The Media Guru Answers(Tuesday, March 28, 1995 ):
Each site likely has its own rate card, which you should be able to obtain from the site operator. In the case of Ziff-Davis, you can find out more information at: http://www.ziff.com/adinfo.html

In all likelihood, they also track the number of users to their site, from which you can derive a cpm (assuming they will release the information).

Qualitative considerations are likely based on the intensity of site usage, which as stated above can be measured precisely, and the ability to target specific groups of users, such as computer users.


Monday, February 27, 1995 #1866
Do you have any data on the fees charged to advertisers, ie the equivalent of the cpm in the magazine world?

The Media Guru Answers(Monday, February 27, 1995 ):
Each of the online services will provide their membership statistics and rates in their media kits. Audience statistics on most Internet sites, however, are somewhat vague at this point in time and pricing is less structured than the online services. As with all media today, both traditional and non-traditional, negotiation is part of the media buying and selling process, and it is up to the planner and buyer to evaluate the audience or potential audience estimates provided by the medium in the determination of the value and efficiency of the media proposition. Some media, including Internet and online services, may be willing to consider a payment based on the number visitors to their site. They have this information, but whether or not they're willing to make it a part of the buying or negotiation process is strictly up to them and your negotiating skills.



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