How To Create Tenancy Deals With a Media Pack
By Matt Swan
For the first time, advertisers will invest more than $50 billion in digital channels in 2014, according to eMarketer, resulting in elevated competition among channels vying for a share.
As a result, additional scrutiny is inevitably placed upon these channels. As the performance marketing and affiliate industry grows in professionalism, publishers that are able to produce media packs are placing themselves in a strong position to benefit from tenancy deals - where an advertiser agrees to pay for additional coverage on a publisher’s site. This is typically a fixed fee or could be based on the display model of CPM advertising. It is in addition to the cost per acquisition (CPA) the publisher will receive for generating sales.
Previously it had been difficult to justify payment for a tenancy placement. With the affiliate model primarily founded on paying only when a sale occurs, publishers ran into difficulty when trying to secure additional advertising revenue through promotional placements.
As the industry has evolved, more emphasis has been placed on analyzing the data behind online activity, and a significant amount of research has been put into the customer journey and what happens pre-sale. As well as rewarding publishers that are ultimately converting visitors, greater consideration is given to what is happening at the top of the sales funnel, in the awareness stage. Advertisers are seeing the merits of tenancy placements and rewarding publishers for not only the sales they generate, but also the brand awareness they are able to create.
In order to benefit from potential tenancy deals with advertisers, publishers that are able to provide detailed media packs stand the best chance of selling their value to the advertisers they promote. A well-constructed media pack allows a publisher to showcase its website and provide additional insight and data to help justify running a tenancy in addition to the standard CPA.
To help sell the benefits to advertisers, there are a number of elements that should be included in a media pack. The obvious starting point is defining the website, including how it is used and why it is beneficial to visitors. Additionally, it is essential to provide traffic volumes and the target audience of a site. This helps advertisers understand the potential reach and how it fits with their target audience. The greater the reach and the fit, the easier it is to justify a tenancy deal. If there is additional activity such as an email database, Twitter account or Facebook page, the size and reach of these should also be given.
Media Pack Inspiration
See three media packs in action from an Internet retailer, a service provider and an information publisher at wsm.co/mediapackegs
Data should be a key component of any media pack. As well as providing information on the volume of visitors to a site, the size of email databases, Twitter following etc., it is essential publishers showcase engagement levels. What are the site’s conversion rates and how much interaction is there on the brand’s Twitter feed, for example? Any statistics that back up the reach and engagement of marketing channels will add strength to a media pack.
Case studies should also be provided and these should be tailored to the advertiser being pitched. Include relevant examples from the sector to showcase how similar advertisers have benefited from a tenancy placement. Be sure to include information on the number of impressions, as well as click-through and conversion rates of these placements. Anything that demonstrates a positive return on investment will instantly be of interest to advertisers receiving the media pack.
Finally, a full breakdown of the tenancy placements available and the costs associated with these should be clearly outlined.
Tenancies are becoming more widely used across the affiliate channel and a strong media pack can certainly help publishers stand out from the crowd. With a competitive pricing model, coupled with case studies to support previous performance, publishers are well set to take advantage of additional advertising revenue from their sites.