How to price ads in a digital magazine: clicks, impressions or a flat fee

In print, ads are priced by size and position. In a digital magazine you also have clicks and views, and it's tempting to price by them. That's not always a good idea.

The three models

Flat fee per placement

You charge a set price for a full page, half page and so on, as in print.

Good for: most member magazines. It's simple, predictable and easy to explain.

Watch for: the advertiser may want proof of results. Report on clicks and views afterwards. How to do that.

Per thousand impressions (CPM)

You charge for each thousand times the ad is shown.

Good for: larger audiences and ongoing placements, where you can count impressions reliably.

Watch for: small audiences produce small totals. A page that reaches 1,500 readers earns very little on a strict CPM, and the advertiser may expect a refund if numbers fall short.

Per click (CPC)

The advertiser pays only when somebody clicks.

Good for: advertisers who insist on performance. Common in online advertising.

Watch for: you take on all the risk, and click rates in a magazine are often low. A great ad in a great magazine can still earn little.

Which should you use

For most associations:

1. Start with a flat fee, based on your readers and position.
2. Provide a report with views and clicks.
3. Offer discounts for several issues. Setting your rate card.

If an advertiser asks for performance pricing, you can propose a lower flat fee plus a bonus if clicks pass a stated number. Keep the maths simple.

What affects the price

• Audience size and quality. How many readers, and how valuable are they to this advertiser?
• Position. Back cover and early pages cost more.
• Format. Page, half page, banner or sponsored article.
• Exclusivity. Being the only advertiser in a category is worth more.
• Frequency. Multiple issues earn a lower per-issue rate.

What not to do

• Don't promise a number of clicks. You don't control what readers do.
• Don't price differently for each advertiser without a reason you can explain.
• Don't hide the pricing model. Put it in your media kit.

Keep one number to hand

Divide the price by the readers to get your cost per thousand. Compare it with what advertisers pay elsewhere. If you're far below or above, ask why.

A sentence for your rate card

Prices are per placement per issue. Results (issue opens, page views and clicks) are reported within seven days of publication.

Simple and clear.