![]() ![]() In the example above, Bartimus Times’ subscribers are clearly more engaged and click on more ads – probably due to the low number of alternative links in the newsletter.Ībove, we’ve introduced a new metric. Let’s go back to the Abacus Weekly and Bartimus Times example. Number of other advertisers in the email.The CTR is a good performance metric but it doesn’t give you insight into the number of clicks an ad gets. Most newsletters consider the click-through rate (CTR) to be the total number of clicks a typical send gets. For conversions: focus on the number of clicks a newsletter receives They focus on brand alignment instead of instant ROI. ![]() These newsletters also tend to perform poorly on clicks in comparison to the cost of sponsorship. Newsletters that perform well on brand awareness have an open rate above 30% and a good brand name. Here’s a quick calculator so you can see how it works for yourself.įor brand awareness: focus on an email’s open rate So for example, let’s say a click was worth $4 due to a valuable audience, and an impression was worth $0.01. Total Opens * cost per impression + Number of clicks * cost per click = Sponsorship Fee ![]() Open Rate / 100 * Number of Subscribers = Total opens A better system than CPM to work out the true value of email adsĪ hybrid system that combines opens and the number of clicks is the method we’ve come to rely on most. If you were looking to sponsor a newsletter, Bartimus Times is probably going to get you better results. So, an ad on Bartimus Times is worth more than Abacus Weekly. Abacus Weekly and Bartimus Times have different performance stats.įrom the table above, we can see that Bartimus Times will get us almost double the number of impressions and 1.25x the number of clicks. Both newsletters have a modest general-interest audience of 10k subscribers and charge a CPM of $15 which works out to $150 per sponsorship.ĭespite the price being the same, the value of each sponsorship is not equal. We’ll call them Abacus Weekly and Bartimus Times. Let’s take a look at two example newsletters. The following information is advice based on our personal experience running thousands of email ads a year. How to tell if a newsletter is going to perform before buying a sponsorship?ĭisclaimer: There is no surefire way of judging how an audience will react to your ad. Want to run email ads on a CPC instead? Try the Paved Ad Network. Many newsletter ad networks still use CPM calculations to price their ads, resulting in inflated open rates (and costs) for advertisers. This is why sponsors need to examine different metrics like clicks to accurately judge the value of a sponsorship opportunity and avoid paying for automated opens. Here at Paved, we’ve noticed that over 50% of impressions on our Ad Network come from automated click activity on Apple servers. The update included enhanced privacy features that rendered open tracking inaccurate. Why? If you’re in the email marketing business, you’ve probably heard of Apple’s Email Privacy Protection update. To get the most value out of your marketing budget, always combine research, audience value, and performance stats.īecause CPM relies on email open rates for its calculations, it’s not a perfect metric for everyone. Is CPM alone effective for pricing email ads?īottom line: Using a CPM alone to price email ads is risky. Newsletters with fantastic brand value–think Product Hunt or TechCrunch- or above-average engagement and clicks–think Morning Brew and The Hustle–command much higher rates. Influence potential (in short, this is brand value.).(how much a particular audience is worth at the current time) With most newsletters requesting payment upfront, it’s not a viable option.Īt Paved, we use a few metrics to calculate fair base pricing: eCPM is best used for tracked ads that are paid after the sponsorship. It is predominantly used in programmatic advertising or performance-based pricing. ![]() There are two ways to figure out how effective your sponsorship might be. While two newsletters might look similar in price, you’d effectively pay 4x more per impression for Newsletter A. The difference between the open rates dramatically changes your cost per view. Newsletter A 10% open rate, and Newsletter B has a 40% open rate. Let’s say there are two newsletters with the same CPM of $15. Why CPM is more expensive than calculating based on email performance stats
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