Purchasing Magazine Advertising Space

Cost Elements Magazine rates are primarily a function of circulation. Other variables include the size of the ad, its position in the publication, the particular editions (geographic, demographic) chosen, any special mechanical or production requirements, and the number and frequency of insertions.

Advertising space is generally sold on the basis of space units such as full page, half page, and quarter page, although some publications quote rates on the basis of column inches. The larger the ad, the greater the cost. However, many advertisers use full-page ads since they result in more attention and readership. Studies have found that full-page ads generated 30 percent more readership than half-page ads.15

Ads can be produced or run using black and white, black and white plus one color, or four colors. The more color used in the ad, the greater the expense because of the increased printing costs. On average, a four-color ad costs 30 percent more than a black-and-white ad. Advertisers generally prefer color ads because they have greater visual impact and are superior for attracting and holding attention.16 Roper Starch Worldwide analyzed the effect of various factors on the readership of magazine ads. The "noted" scores (the percentage of readers who remember seeing the ad in a publication they read) are anywhere from 6 to 59 percent higher for a four-color full-page ad than for a black-and-white ad, depending on the product category. "Read-most" scores (the percentage who say they read more than half of the copy of an ad) are also higher for four-color versus black-and-white ads, by about 25 percent on average.17 Other studies have examined the impact of size and color and found that a four-color spread (two facing pages) outperforms a one-page color ad by 30 percent and a black-and-white spread by 35 percent in terms of ad recall.18 Ads requiring special mechanical production such as bleed pages or inserts may also cost extra.

Rates for magazine ad space can also vary according to the number of times an ad runs and the amount of money spent during a specific period. The more often an advertiser contracts to run an ad, the lower are the space charges. Volume discounts are based on the total space purchased within a contract year, measured in dollars. Advertisers can also save money by purchasing advertising in magazine combinations, or networks.

Magazine networks offer the advertiser the opportunity to buy space in a group of publications as a package deal. The publisher usually has a variety of magazines that reach audiences with similar characteristics. Networks can also be publishers of a group of magazines with diversified audiences or independent networks that sell space in groups of magazines published by different companies. For example, the News Network sells space in a group of news-oriented publications such as Time, Newsweek, and U.S. News & World Report. The Ivy League Network is a consortium of alumni magazines of Ivy League schools and one non-Ivy, Stanford University. Advertisers can purchase ad space and reach the well-educated, affluent alumni of all eight schools with one media purchase through the network (Exhibit 12-12).

Continue reading here: Proving That Magazine Ads Work

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