There are no set prices for Sponsorships because they are each unique. The only rule is that you should not sell them any cheaper than you sell Standard inventory since they always trump it in the ad stack. Of course we sometimes violate this rule but following this principle would be how we'd maximize the yield from our limited inventory.
Advice for how to price Sponsorships is as follows:
- Forecast inventory (doc, DFP tool)
- Set a mental "add-on" price for the targeting based on how much supply you have (lots of it, make it cheap, perhaps negative; limited supply, use higher price to make sure the inventory finds the customer who values it most). e.g. $10 for politics or $2 for Obits, etc.
- Divide through available inventory by the CPM base unit and multiply by a target CPM to find the desired yield. Multiply by a share of voice (SOV) percentage to get a Sponsorship price. Divide the Sponsorship price by the number of days to calculate the CPD.
Formulas
Total Available Impressions/1,000 * Target CPM = Total Yield
Total Yield * SOV = Cost of Sponsorship
Example
Forecasted 10,000 impressions, I want a 1 penny per ad premium over ROP = $10 extra for a total $20 target CPM
(10,000/1,000) = how many CPM units we have to sell (ten of them)
(10,000/1,000) * 20 = $200 we can make from a 1 penny per ad premium ($20 CPM)
50% SOV = $100 worth of inventory
25% SOV = $50 worth of inventory
25% would get an expected 2,500 impressions of the total 10,000. Total cost / 2.5 = their CPM. $250 would mean they pay $100 CPM for these 2,500 impressions. $125 is a $50 CPM for these 2,500 impressions, etc. This is how a Sponsorship's price determines its CPM.
$50/5 days = $10 CPD for 25% SOV of these 10,000 impressions which comes out to an expected $20 CPM
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