Pricing in Media May 7 th , 2009 Ian Cruickshank
Pricing in Media
Dec 15, 2014
Here is a presentation that I gave to an MBA class at the UBC Sauder School of Business. Let me know if you have any questions .
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Pricing in MediaMay 7th, 2009
Pricing in MediaMay 7th, 2009
Ian CruickshankIan Cruickshank
Quick OverviewQuick Overview
Who is this guy?
Media landscape
The Class
Traditional Examples
Non-Traditional Examples
35 Min + 15 for Questions
Who is this guy?
Media landscape
The Class
Traditional Examples
Non-Traditional Examples
35 Min + 15 for Questions
Who is this guy?Who is this guy?
I ’m just like you
Undergrad
6 years in Media
Radio Guy
... moved to print?
Don’t worry - Digital
I ’m just like you
Undergrad
6 years in Media
Radio Guy
... moved to print?
Don’t worry - Digital
The Media LandscapeThe Media Landscape
Traditional or Legacy
Newspaper/Magazines
Television
Radio
Traditional or Legacy
Newspaper/Magazines
Television
Radio
The Media LandscapeThe Media Landscape
TelevisionTelevision
The Media LandscapeThe Media Landscape
Non-Traditional/New Media
Out of Home & Digital OOH
Digital
Online Display
Online Search
Mobile
Non-Traditional/New Media
Out of Home & Digital OOH
Digital
Online Display
Online Search
Mobile
The ClassThe Class
“Pricing is the moment of truth - all of marketing comes to focus in the pricing decision” Corey 1962
“Pricing is the moment of truth - all of marketing comes to focus in the pricing decision” Corey 1962
The ClassThe Class
Where do we fit in to the four current practices
Cost-based, Customer-driven, Competition-driven, Value-based
Customer and Competition-driven
Where do we fit in to the four current practices
Cost-based, Customer-driven, Competition-driven, Value-based
Customer and Competition-driven
General Media PricingGeneral Media Pricing
The ClassThe Class
Customer-driven
Supply and Demand
Negotiation
Budget
National vs. Local Retail
Customer-driven
Supply and Demand
Negotiation
Budget
National vs. Local Retail
The ClassThe ClassCompetition-driven
Monopoly
Oligopoly
Competition
Cannibalization
Competition-driven
Monopoly
Oligopoly
Competition
Cannibalization
The ClassThe Class
Russian Proverb: There are two fools in the market. One does not charge enough. The other charges too much.
Or the competition doesn't charge enough...
DON’T LEAVE MONEY ON THE TABLE!!
Russian Proverb: There are two fools in the market. One does not charge enough. The other charges too much.
Or the competition doesn't charge enough...
DON’T LEAVE MONEY ON THE TABLE!!
The ClassThe Class
Psychology in pricing
Newspaper pricing & perceived value
“It’s time for the Newspaper Industry to Die”
Yet Circulation is still Strong in Canada
Psychology in pricing
Newspaper pricing & perceived value
“It’s time for the Newspaper Industry to Die”
Yet Circulation is still Strong in Canada
The ClassThe Class
Price Discrimination
Segmentation
Local vs. National
Direct vs. Agency
Consumer type & Industry
Price Discrimination
Segmentation
Local vs. National
Direct vs. Agency
Consumer type & Industry
The ClassThe Class
Price Discrimination
Buyer location
Time of purchase
Quantity/Volume
Bundling
Price Discrimination
Buyer location
Time of purchase
Quantity/Volume
Bundling
The ClassThe Class
Price Discrimination
Yield
Which Media?
Price Discrimination
Yield
Which Media?
Perishable products with fixed capacity
Variations in WTP and arrival purchasing time
The ClassThe Class
Channels
Direct
Agency
adbid.ca
Channel conflict?
Channels
Direct
Agency
adbid.ca
Channel conflict?
Traditional ExamplesTraditional Examples
Newspaper
WTP
Price Discrimination
Time & Volume
Value perception vs. effectiveness
Newspaper
WTP
Price Discrimination
Time & Volume
Value perception vs. effectiveness
TraditionalExamplesTraditionalExamples
Newspaper
Rate Card
Newspaper
Rate Card
Traditional ExamplesTraditional Examples
Television
WTP
Time & Volume
CPM/GRP
Television
WTP
Time & Volume
CPM/GRP
Traditional ExamplesTraditional Examples
Television
Rate Card
Television
Rate Card
Traditional ExamplesTraditional Examples
Radio
WTP
S&D, Sales Volume, Demographic, Ratings
CPM/GRP
Radio
WTP
S&D, Sales Volume, Demographic, Ratings
CPM/GRP
Traditional ExamplesTraditional Examples
Radio
Rate Card
Radio
Rate Card
Radio
Submision
Radio
Submision
Traditional ExamplesTraditional Examples
Non-TraditionalNon-Traditional
Out of Home & Digital OOH
S&D, Seasonality, Volume, Number of Markets, Demographic
Creative variations
Out of Home & Digital OOH
S&D, Seasonality, Volume, Number of Markets, Demographic
Creative variations
Non-TraditionalNon-TraditionalCreative variationsCreative variations
Non-TraditionalNon-TraditionalCreative variationsCreative variations
Non-TraditionalNon-TraditionalCreative variationsCreative variations
Non-TraditionalNon-Traditional
Digital
Metrics and Analytics
CPM, CPC, CPA, CPL, CPT...
Trackable/traceable
Digital
Metrics and Analytics
CPM, CPC, CPA, CPL, CPT...
Trackable/traceable
Non-TraditionalNon-TraditionalDigital
Rate Card
Digital
Rate Card
Non-TraditionalNon-TraditionalDigital
Targeting = pricing in $CPM
Mass Impulse Buy < $1.00
Demographic = $5.00
Psychographic = $7.00 - 10.00
Contextual = $15.00 - $25.00
Behavioral = $40.00 - 80.00+
Digital
Targeting = pricing in $CPM
Mass Impulse Buy < $1.00
Demographic = $5.00
Psychographic = $7.00 - 10.00
Contextual = $15.00 - $25.00
Behavioral = $40.00 - 80.00+
Non-TraditionalNon-Traditional
Digital
So where is digital media pricing going?
The new job of a media company is to be a Data company
Information is pricing power
Digital
So where is digital media pricing going?
The new job of a media company is to be a Data company
Information is pricing power
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