March 2006
HOW TO MEASURE FREE MEDIA
If you negotiate aggressively for online media as we do, a campaign of any
significant scope is all but certain to include some number of "bonused" or
free placements. These can take the form of additional newsletter insertions,
banner ads, e-mail blasts, etc. that the publisher throws in to sweeten the
deal.
The problem with such placements is that, if not accounted for properly, they
can skew campaign results and reporting on cost per lead. For example, if a
newsletter insertion is recorded at zero cost, then the cost per lead for that
insertion will report at zero, even though it may not have performed as well
as other publications.
Likewise, if you're measuring the cost-effectiveness of newsletter insertions
versus, say, broadcast e-mail, and part of your newsletter buy was comped by
the vendor, then you run the risk of assigning newsletter ads an unfair cost
advantage.
One way to manage this issue is to always assign a dollar value to those
placements that are bonused or comped, and pro-rate or discount other, fully
paid placements accordingly.
In the example below, an ad in the publisher's weekly e-newsletter was bonused
as part of an integrated media buy. The total cost of the buy was $9,500, a
36.67% discount off the total rate card cost (including the free newsletter
ad) of $15,000.
By taking that overall discount, and applying it equally to the rate card cost
of each line item, we end up with an "adjusted value" for each placement that
enables us to properly track the cost-effectiveness of each vehicle, including
the free newsletter ad.
| Site A |
Media Plan Cost |
Rate Card Cost |
Discount % |
Adjusted Value |
| Weekly eNewsletter |
$0 |
$750 |
100% |
$475 |
| Daily eNewsletter |
$1,000 |
$1,500 |
33% |
$950 |
| Banner Ad |
$1,000 |
$1,500 |
33% |
$950 |
| Dedicated E-Mail |
$7,500 |
$11,250 |
33% |
$7,125 |
| |
$9,500 |
$15,000 |
36.67% |
$9,500 |
Thanks to Kris Peterson, Connect Direct Media Director, for her contribution
to this month's tip.