How do magazine publishers set their advertising sales prices?
Setting advertising sales rates is a complex topic that is covered thoroughly in our book, Starting and Running a Successful Newsletter or Magazine. Here’s a tiny overview: Advertising sales rates are always related to circulation, meaning the number of paid or unpaid subscribers and newsstand buyers of your magazine. The relationship is called “Cost per thousand readers” or CPM. Every advertiser always divides your page prices by your circulation. If you have 10,000 readers and your ad pages cost $1500, then they’d divide $1500 by 10 and your CPM would be $150. The calculation allows advertisers to compare the prices of magazines with completely different circulation sizes. Publishers compare their prices to competitors’ using CPM. You will find that magazines in a niche tend to charge the same CPM.Take the time to study what CPMs are common among your prospective competitor magazines or websites.The easiest way to set your prices is just to pick something close but possibly lower tha