The Imperfect World of Quantifying Website Traffic
Online Advertising Lingo
Necessities for Every Company with a Website
Leveraging the True Power of the Internet
Bootstrap Marketing Online
A Dated Introduction to Online Marketing*
*Note: This is the original version of a whitepaper that was authored in 2001 by iCondotta's founder and principal consultant, Stephan Aarstol. It's a useful primer, but dated - pre-Wikipedia (2001), pre-Google AdWords PPC (2002), way pre-YouTube (2005), you get the picture...
Email Newsletter Sponsorships
While similar in many ways, newsletter sponsorships have some advantages as well as some disadvantages over site or section sponsorships.
Newsletter sponsorships are more comparable to ads in a weekly or monthly trade journal, except for one rather distinguishing factor – you can tell who opens an email newsletter, and thus who is exposed to the advertiser’s message. In one form or another, each recipient opted to receive a series of email newsletters (just like an offline journal) at some time in the past. Site sponsorships, in contrast, are more comparable to event or venue sponsorship where the audience actively comes to a certain location. Thus, site sponsorships probably have a more captive, and receptive, audience. Nonetheless, if an advertiser is interested in achieving immediate reach and calculated frequency, then email sponsorships are unparalleled marketing vehicles.
Email newsletters come in many different formats (plain text, HTML, and potentially even rich media) and the sponsorship representation within those formats also varies from one to the next. Therefore, it’s often problematic to compare one email newsletter placement opportunity to another. Unfortunately, price and audience demographics don’t usually give the whole story.
The cost of sponsoring a newsletter distribution varies dramatically according primarily to demographic targeting. The cost of advertising in a newsletter is usually based on a cost per email sent which can be expressed as a cost per email or a CPM rate (i.e. $0.10 per email sent which can also be stated as a $100 CPM). Often times, newsletters are offered on a per-distribution pricing scheme that is updated every so often to reflect the changes in circulation. The majority of email newsletter sponsorships fall somewhere in the range of a $20 CPM rate up to a $100 CPM rate. If you want to be the exclusive sponsor, you can expect to pay a premium on these rates. Additionally, if you are trying to buy a sponsorship of an exclusive list of fortune 1000 CEO’s, you might be charged $2 or $3 per email which translates into a several thousand dollar CPM rate. Depending on your business objectives, this may or may not be a terrific bargain.
Authored in 2001
by Stephan Aarstol