Last year more than £17.5m was paid out in tenancy deals (representing an annual growth of over 50%) and many of these were the direct result of media packs.
Being aware of what makes a media pack successful and addressing whether publishers are really making the most of theirs is becoming increasingly important in the performance channel.
There is great value in supplying media packs to advertisers. It allows publishers to showcase what makes their website attractive by providing enough insight and information to help justify costs over and above a standard CPA.
It encourages forward planning and above all else, allows advertisers to forecast their spend ahead of time (as very few advertisers have an uncapped CPA focussed budget).
The tenancy checklist
When constructing a media pack to help with a tenancy deal it is vital certain questions are answered.
- What your website is and how it works
- How much traffic you get and the kinds of people that visit your site
- Email database sizes (where relevant)
- The exact placements being offered and at what cost
- Case studies on the impact of running a tenancy deal (and the associate return on investment)
The last point is notably the most important, as it consists of the figures that most frequently convince an advertiser how worthwhile a tenancy can be.
For example, a publisher may charge an advertiser £500 to promote a homepage banner for a week. However, if there are no details or case studies on how this banner performs, it will be extremely difficult to convince the retailer to part with their cash.
Backing up the tenancy cost with performance statistics, showing what incremental uplift another retailer experienced by taking out this opportunity, will mean publishers are more likely to get approval and budgets signed off for the activity.
How to price opportunities competitively
Firstly, identify what opportunities there are to offer. Google Analytics can help, but the main things to look at are: the pages where your visitors spend most of their time, the page that most incoming traffic arrives on and finally, the average price of tenancies in your industry (your network will be able to assist with this).
Initially, you may have to offer this exposure for free to build case studies. Those sites with lower volumes of traffic/members can’t expect big fees straight away. It may be required to prove to advertisers that investing more money will be justified and profitable in the long run.
With tenancies increasing year on year, advertisers are getting used to understanding that exposure comes at a cost and have reacted positively to this development. Advertisers do forecast and account for tenancy spend within their budgets so it’s down to publishers to create a media pack that justifies their investment.
The final part of increasing earnings through a media pack is the distribution. networks, agencies and top advertisers should all be privy to what publishers are creating so they can champion the cause.