How to price ads and sponsor packages?


1

I am planning to launch a business that includes having selling machines at several areas in the city. I could identify the fixed and variable costs of the business. I am intending to allow advertisement slots on my machines, I have a sever problem in determining the prices for the advertisement slots.

  1. Should the pricing be per month or year?
  2. Per each machine separately or a package?
  3. Having different advertisers for each machine even if competitors or just one on the whole line?
  4. What if i included an LCD screen on my machines where ads appear for several seconds then change to the next ad and so on.

How could this be calculated and determined as well?

Pricing Marketing Sales Media Advertisment

asked Jul 9 '14 at 14:42
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Moustafa Ezzat
11 points

1 Answer


2

A great way to see this would be to talk to a competitor as a possible customer.

Here in the United States, there are a few companies that offer video ads at gas stations. I would recommend checking how they structure their pricing and packages.

Here are some of them:

There is one way these providers add in a "direct response" capability in a way. Instead of constantly showing ads, the ads only start once someone starts using the gas pump. This way the advertiser can get a metric of how many people were exposed to their ads.

Without that capability, it wouldn't be different than having a billboard. So having a sensor in your machine that can record the number of views would be a value add for advertisers.

answered Jul 9 '14 at 16:04
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Patricia Wright
638 points

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Pricing Marketing Sales Media Advertisment