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Volume discounts
Some newspapers will give you a discount simply based
on the total volume you agree to run over a certain amount of time, usually
a year, regardless of whether you run once or 365 times during that time.
So, while a newspaper might charge an advertiser $50 for a column-inch if they only run a total of 12 column-inches for the entire year, that same newspaper might charge an advertiser who is willing to commit to running more, say 100 column-inches sometime during the next year, a discounted column-inch rate of $38.50 instead of $50. Under this arrangement, the advertiser signs a contract agreeing to run 100 column-inches over the next year, and the newspaper doesn't care what size or how frequently the advertiser actually runs during that year, just as long as the total column inches add up to 100 at the end of the contract year. So, depending on how much they commit to, one advertiser might get a rate of $50 on a 2x6 and spend $600 per ad, while a contract advertiser might get a rate of $38.50 and only spend $462 on a 2x6. So now we have two rates, one for people who don't want to commit to a higher volume of column-inches over a year and another for those willing to make a commitment. Except the newspaper doesn't want to stop there. The newspaper wants to encourage people to commit to as much advertising as possible, so they work in a number of different discount levels, and the more the advertiser agrees to run, the cheaper the rate will be. Running 12 column-inches a year might cost $50 per column-inch, committing to 100 column-inches might get them a $38.50 col inch rate, committing to 700 column inches a year might get them a $37 rate, and committing to 5,000 inches a year might earn the advertiser a $35.45 rate. This way, no matter how much you might already be thinking about spending, if you commit to a little more advertising this year, you're rewarded with a better per inch rate and thus a lower per ad cost. With multiple discounts like this, the rates in the
rate card might seem confusing, but it's a good idea to take advantage
of these rates early on. So in our example on this page, you can find
the contract level you're on (or willing to commit to) along the left
hand column, and then find the rate next to it. It's pretty simple once
you try it.
Next: Combination rates |
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