# Newspaper Ad Pricing – How It Works

One of the most frequent questions our consultants receive is “how does newspaper ad pricing work?” Stick with me through the end of this post and I’ll make sure you have a clear understanding.

Pricing Explained:
If you’re new to print advertising, or have used it before but never dug into the pricing structure, then it can initially seem a bit confusing. Newspaper ads are primarily priced using two methods:

Cost-per-inch:
In the case of cost-per-inch (CPI), price is determined by the size of your ad in relation to the rate. Rates vary based upon the annual budget, individual publication, and size of the audience reached. See the image below. For example, a single page in the Jefferson City News Tribune is six column-inches across, and 20.25” in height. If you decide that you would like to run an ad that is 3 column-inches wide by 10 inches tall, you would have a “30 inch ad.”

Next, take that figure (30 inches) and multiply it by the rate. In the image above, you can see that with an annual print advertising budget of \$6,000, you would get a rate of \$9.65 per column-inch in the daily Newspaper.
This means that a 3”x10” ad in the News Tribune would be priced at \$289.50.

To recap, here is the math:

Step 1: Determine the Total Inches of Your Ad
• Total Inches=Ad Width X Ad Height

Step 2: Determine Your Rate
• Refer to the rate card and find the rate that correlates with your budget and the desired publication.

Step 3: Determine Price
• Price=Rate X Total Inches

The calculations above would yield a black and white advertisement. As with any print advertising, you will also need to use this same process to add color. Below, you can see example rates for adding color in the News Tribune: As an example, a 2 inch X 2 inch ad in the daily paper would only be an additional \$13, whereas a 3 inch X 10 inch ad would require \$97.50 (30 inches X \$3.25) for color.

Note: The additional price of color has a maximum, regardless of ad size. With the pricing above, you would not exceed an additional \$180 for a color ad in the daily newspaper, or \$210 in the Sunday newspaper.
That sums up cost-per-inch pricing. Now onto the next method:

Cost per thousand
Cost per thousand, or “CPM” as it is commonly written, is a more direct pricing method that is largely used for fixed or standardized ad sizes like Front Page Notes. A rate is set that is based directly upon the reach of the publication and desired quantity. Here are the rates for a Front Page Note in our newspapers: As you can see, if you are doing a run of 10,000 Front Page Notes, you would get a rate of \$60 CPM. To calculate your overall price to print and run this ad, you take your quantity (10,000) and divide it by 1,000. Multiply that result (10) by \$60 and we get a price of \$600.

The formula:
Price=Rate X (Reach / 1,000)
\$600=\$60 X (10,000/1,000)

That’s it! If you have any additional questions about how to determine price, or how to get the best rates possible, give us a call at 573-761-0228 or request a consultation right here. 