How are advertising spaces in coupon books usually priced?

20 replies
I have a couple of questions about physical coupon books that are either sold to the public or used for fundraising or distributed for free. You usually have many different categories.

How are these advertising spaces usually priced for businesses ? Is it usually a fixed price per coupon for a certain number of distributed book?

Does it change based on the category? I mean if the coupon brings in $1,000 of revenue, is it priced the same as a $10 revenue potential coupon just based on space? Is a 2x2 space for a fast food restaurant coupon priced the same as a 3 night hotel stay coupon?

What are the rules regarding what the coupon could include? The business might decide to mention that this coupon can be used 10 times instead of paying for 10 coupons.

Many of those books are mailed out to homes. Does the cost differ if they are distributed by hand? Do you have an idea about usual prices?

Thanks in advance.
#advertising #books #coupon #priced #spaces
Avatar of Unregistered
  • Profile picture of the author GordonJ
    Originally Posted by ribrah2018 View Post

    I have a couple of questions about physical coupon books that are either sold to the public or used for fundraising or distributed for free. You usually have many different categories.

    How are these advertising spaces usually priced for businesses ? Is it usually a fixed price per coupon for a certain number of distributed book?

    Does it change based on the category? I mean if the coupon brings in $1,000 of revenue, is it priced the same as a $10 revenue potential coupon just based on space? Is a 2x2 space for a fast food restaurant coupon priced the same as a 3 night hotel stay coupon?

    What are the rules regarding what the coupon could include? The business might decide to mention that this coupon can be used 10 times instead of paying for 10 coupons.

    Many of those books are mailed out to homes. Does the cost differ if they are distributed by hand? Do you have an idea about usual prices?

    Thanks in advance.
    Your questions cover a very wide field. And they don't help us to help you because we don't know what your intent is. Are you going to sell coupon books? Or the ads in them?

    It appears you are selling advertising, is this correct? If so, then the offer to the advertiser is one of either specific market (school fundraisers) or to locale, or numbers.

    Let's look at each, OK?

    Every month my mailbox gets the TOWN CLIPPER. A coupon booklet distributed for free (to us the recipient) and has local coupon offers. These are normally sold by TIME. That is, the sales rep calls on a business like Joe's Oil Change Shop and offers a one year ad for a big discount over a one time or shorter term ad. The size of the ad is also offered, so it may be only one coupon per page, and in this case, Joe might offer a multiple coupon use; a discount for every oil change in the family or such.

    In these monthly/weekly mailers, one will see limited time offers, which expire, seasonal offers, or combo deals like buy one, get one half off.

    The BIG guy in fundraising coupon books is ENTERTAINMENT, and they have a web site which explains how their program works too. Take note of the APP. Which is the current trend in all COUPON promotions. The coupon on the smart phone, or the app.

    These are often reward coupons too, such as buy 7 coffees, get one free sort of thing. Or BIRTHDAY specials, where the customer gets a free dessert.

    See there are quite literally scores of ways to offer coupon advertising. If you can give us some more details, we might be able to offer you some specifics. The RULES are whatever you make them to be.

    If you are selling NUMBERS to advertisers, such as a coupon going to 10,000 homes in a certain area. then industry standards are usually a price per EYEBALL, but not always.

    Number of books, booklets, or whatever is one way to set your ad prices.

    The different way is TARGET marketing. I would advise you to NEVER discuss what revenue a coupon brings in, that is almost suicide in selling ads. YOU have no idea how many coupons will be redeemed, how accurate the number is (unless using electronic tracking apps).

    What is it you want to do? We can probably offer you much better advice or opinions if we have some idea of what you want from this, fair enough?

    GordonJ
    {{ DiscussionBoard.errors[11425815].message }}
    • Profile picture of the author ribrah2018
      Thanks a lot for the details. I believe I should have been more specific. What I want to do is sell advertising space to companies, and distribute the coupon book for free. I don't want to enter the app/online spectrum just yet. I am partnering with a channel that will distribute the coupon books to 30,000 to 40,000 homes by hand. I am just confused as to my strategy with the businesses. Will I offer a fixed price regardless of category? Should it be based on space or number of coupons, and what conditions should i put in place to maximize space/coupons sold?

      To be more specific, if I sell a coupon space for $500. Let's assume a gas station decides to write in the ad space (10% discount for 10 refills of $100 each), instead of buying 10 coupon spaces for 10% each. How do I manage to maximize my advertising profit, while keeping the businesses happy?
      {{ DiscussionBoard.errors[11425911].message }}
      • Profile picture of the author ribrah2018
        I need to add that the coupons should be valid for 1 year from the date of distribution, and this distribution happens on a monthly basis over the whole year until we cover the 40,000 homes distributed once to every household, so you will have changing validity dates every month but fixed for 1 year (from jan to jan, feb to feb etc)
        {{ DiscussionBoard.errors[11425924].message }}
        • Profile picture of the author GordonJ
          Originally Posted by ribrah2018 View Post

          I need to add that the coupons should be valid for 1 year from the date of distribution, and this distribution happens on a monthly basis over the whole year until we cover the 40,000 homes distributed once to every household, so you will have changing validity dates every month but fixed for 1 year (from jan to jan, feb to feb etc)
          ribah2018, this is just MY opinion, and only one of many you may get.

          It sounds like (and I could be wrong) that you are selling ads for someone else coupon book, is this correct? You are not the publisher or owner or distributor, but you will be a person SELLING ADS. If I am wrong, let me know, OK? You have some sort of a relationship or agreement as you have a "partnership".

          Does your partner have a track record of success? The costs of printing X number of booklets each month will get expensive, more so than if using economies...having 30,000 printed all at once vs. 5,000 at a time with different expiration dates.

          It sounds over complicated to me. Someone is afoot, knocking on doors EXPLAINING what a free coupon is...???? Or is it some kid just tossing booklets on to front porches?

          I agree with Claude 100%, find a successful MODEL, of someone who is doing this, and try to replicate their success.

          Are you sure you want to pursue this, when there are so many quicker, faster and much easier ways to sell advertising without all the slop and mess you are presenting here?

          I strongly suggest you spend a day or two in the field calling on businesses, doing a survey of interest to get some instant feedback, there is a LOT of resistance to coupon advertising out there, make sure you have a product which is wanted.

          GordonJ
          {{ DiscussionBoard.errors[11425944].message }}
          • Profile picture of the author ribrah2018
            Does your partner have a track record of success? The costs of printing X number of booklets each month will get expensive, more so than if using economies...having 30,000 printed all at once vs. 5,000 at a time with different expiration dates.

            It sounds over complicated to me. Someone is afoot, knocking on doors EXPLAINING what a free coupon is...???? Or is it some kid just tossing booklets on to front porches?

            Thanks a lot for your valuable help. Let me add some more information to make it clearer. The reason why I find it attractive is that my distribution channel will be completely free of cost. I will not pay a penny for distributing the coupon book which I will brand in my company's name. I will only pay for printing costs. The "partner" has an obligation to visit 30,000-40,000 homes every year as part of their job, and they want to improve their image and satisfaction of their customers by providing this free book. I am starting with this 1 area but this partner works over a much larger area. The issue is that it takes him 9 months to complete all 40,000 visits. I am worried that I will be providing coupons that are valid for 1 year for the people who will receive the book 1st, and then 2-3 months for those who will receive it last.
            {{ DiscussionBoard.errors[11425951].message }}
          • Profile picture of the author ribrah2018
            Are you sure you want to pursue this, when there are so many quicker, faster and much easier ways to sell advertising without all the slop and mess you are presenting here?
            The free distribution by a team of 45 people that i will get to train on how to promote it is the reason why I find it attractive... in addition to everything else.
            {{ DiscussionBoard.errors[11425986].message }}
            • Profile picture of the author OptedIn
              Originally Posted by ribrah2018 View Post

              The free distribution by a team of 45 people that i will get to train on how to promote it is the reason why I find it attractive... in addition to everything else.
              Promoting it? I hope you mean 'selling' something to do with it or those 45 people won't be around long, unless you are paying them a decent salary. Basically you are indicating that you are running a 45 person marketing team.

              Maybe I'm missing something. Then, again - it might not be me. :-)
              Signature

              "He not busy being born, is busy dying." - Bob Dylan • "I vibe with the light-dark point. Heavy." - Words that Bob Dylan wishes he had written.

              {{ DiscussionBoard.errors[11425987].message }}
              • Profile picture of the author ribrah2018
                Maybe I'm missing something. Then, again - it might not be me. :-)
                The partner distributing the book, has a team of 45 people. Those 45 people will be visiting all 40,000 homes. In addition to the purpose of their visit (which has nothing to do with my book), they will offer my book for free to raise customer satisfaction and improve their image. I will be able to train them to explain to people the benefits of owning the book in general.
                {{ DiscussionBoard.errors[11425992].message }}
                • Profile picture of the author Claude Whitacre
                  Originally Posted by ribrah2018 View Post

                  The partner distributing the book, has a team of 45 people. Those 45 people will be visiting all 40,000 homes. In addition to the purpose of their visit (which has nothing to do with my book), they will offer my book for free to raise customer satisfaction and improve their image. I will be able to train them to explain to people the benefits of owning the book in general.
                  Here is a major flaw in this plan.

                  You are counting on these people to fulfill your promise (to the people who paid for the ads)...on the basis that it will enhance their offer.

                  What happens when, in a month or so, they just decide not to do this anymore?

                  Now, are you going to be willing to hire 45 more people...to distribute these coupon books? And pay them out of your own pocket?

                  There is a hard rule in business, that will destroy your business.

                  Never make promises to a customer...then rely on someone else to fulfill. The chances of your arrangement being honored a year from now are slim.
                  Signature
                  One Call Closing book https://www.amazon.com/One-Call-Clos...=1527788418&sr

                  What if they're not stars? What if they are holes poked in the top of a container so we can breath?
                  {{ DiscussionBoard.errors[11426008].message }}
        • Profile picture of the author OptedIn
          Originally Posted by ribrah2018 View Post

          I need to add that the coupons should be valid for 1 year from the date of distribution,
          That won't fly. Advertisers generally use coupons to hopefully generate immediate traffic and oftentimes their offer is based on the current conditions they will be dealing with over the next 30 days, like an overstocking of certain products, promotional offers from their vendors, etc.

          I would never issue a coupon with a one-year shelf life.
          Signature

          "He not busy being born, is busy dying." - Bob Dylan • "I vibe with the light-dark point. Heavy." - Words that Bob Dylan wishes he had written.

          {{ DiscussionBoard.errors[11425958].message }}
          • Profile picture of the author ribrah2018
            Thanks for your answer. Doesn't the Entertainment Book offer a 1 year valid book every year, that is pretty much fixed?
            {{ DiscussionBoard.errors[11425960].message }}
            • Profile picture of the author OptedIn
              Originally Posted by ribrah2018 View Post

              Thanks for your answer. Doesn't the Entertainment Book offer a 1 year valid book every year, that is pretty much fixed?
              You need to quote at least a small portion of the post you are responding to, so people know who you are addressing.

              If your question was directed at me, I'm sorry, but I do not have the answer to that.
              Signature

              "He not busy being born, is busy dying." - Bob Dylan • "I vibe with the light-dark point. Heavy." - Words that Bob Dylan wishes he had written.

              {{ DiscussionBoard.errors[11425962].message }}
      • Profile picture of the author Claude Whitacre
        Originally Posted by ribrah2018 View Post

        Thanks a lot for the details. I believe I should have been more specific. What I want to do is sell advertising space to companies, and distribute the coupon book for free. I don't want to enter the app/online spectrum just yet. I am partnering with a channel that will distribute the coupon books to 30,000 to 40,000 homes by hand. I am just confused as to my strategy with the businesses. Will I offer a fixed price regardless of category? Should it be based on space or number of coupons, and what conditions should i put in place to maximize space/coupons sold?

        To be more specific, if I sell a coupon space for $500. Let's assume a gas station decides to write in the ad space (10% discount for 10 refills of $100 each), instead of buying 10 coupon spaces for 10% each. How do I manage to maximize my advertising profit, while keeping the businesses happy?
        You should study business models of people who have done this before.

        It's going to take you a year to distribute 30-40 thousand coupon books? You don't know the exact number?

        Every month, you are going to change the expiration dates for a year from then?
        And your going to expect advertisers to wait a year before all the books are distributed?

        How much were you going to charge for these ads?

        Really, before you invest any money in this venture, you need to study how others do this business.
        Signature
        One Call Closing book https://www.amazon.com/One-Call-Clos...=1527788418&sr

        What if they're not stars? What if they are holes poked in the top of a container so we can breath?
        {{ DiscussionBoard.errors[11425936].message }}
        • Profile picture of the author ribrah2018
          Thank you Claude. I believe I answered your questions in the post to Gordon above. I truly appreciate your insight. Let's change the wording, lets assume I am distributing it to 4,000 homes per month. How can I manage with the expiration dates of coupons? I am finding it really difficult to find business models of coupon books online... Do you happen to have any suggestions? I also need to add that I am in a tiny country, where 40,000 homes is not small.
          {{ DiscussionBoard.errors[11425952].message }}
          • Profile picture of the author OptedIn
            Originally Posted by ribrah2018 View Post

            How can I manage with the expiration dates of coupons?
            Put a link to the advertiser's coupon on a website. The link can stay the same for a year, but the offer can change whenever needed. Worded properly in your magazine, this can generate curiosity to see the current coupon.

            Don't know why you just don't do a nice coupon/deal site and promote it via postcards. Electrons are free. Printing and postage can become financially onerous, quickly. Printing and mailing postcards would be infinitely cheaper.

            Just my 2¢, but this model has made me lots of money, in a past life. :-)
            Signature

            "He not busy being born, is busy dying." - Bob Dylan • "I vibe with the light-dark point. Heavy." - Words that Bob Dylan wishes he had written.

            {{ DiscussionBoard.errors[11425961].message }}
            • Profile picture of the author ribrah2018
              Don't know why you just don't do a nice coupon/deal site and promote it via postcards. Electrons are free. Printing and postage can become financially onerous, quickly. Printing and mailing postcards would be infinitely cheaper.
              Thanks a lot, I know that a site is definitely easier and cheaper. My target audience is rural and not very online friendly yet. Maybe a combination of both could be possible.
              {{ DiscussionBoard.errors[11425981].message }}
          • Profile picture of the author Claude Whitacre
            Originally Posted by ribrah2018 View Post

            Do you happen to have any suggestions? I also need to add that I am in a tiny country, where 40,000 homes is not small.
            Sorry, I thought you were in the US.

            In your country, there must be someone selling coupons books..or using the mail to distribute them.

            I have no idea who they are, because I'm not in your country.

            I don't mean online coupons..I mean people that actually sell advertising in coupon form. A Google search should find a local company that does this. You should find them, and work for them selling ads for a few months.

            That way,...
            1) You'll actually learn how to do this
            2) You'll make money instead of spending money to test your idea.
            3) In all probability, after a few weeks..you'll find that you don't enjoy it at all...and you aren't stuck in a business you hate.

            Every new business idea feels like a winner...until you actually start doing the work.

            In every case I've seen, it would be to your advantage to work for another company..selling coupon advertising...before starting your own business.

            If anyone sells coupon advertising in your country...learn from them.

            If nobody in your country sells coupon advertising...maybe there is a reason.
            Signature
            One Call Closing book https://www.amazon.com/One-Call-Clos...=1527788418&sr

            What if they're not stars? What if they are holes poked in the top of a container so we can breath?
            {{ DiscussionBoard.errors[11425964].message }}
  • Profile picture of the author Claude Whitacre
    Originally Posted by ribrah2018 View Post

    I have a couple of questions about physical coupon books that are either sold to the public or used for fundraising or distributed for free. You usually have many different categories.

    How are these advertising spaces usually priced for businesses ? Is it usually a fixed price per coupon for a certain number of distributed book?

    Does it change based on the category? I mean if the coupon brings in $1,000 of revenue, is it priced the same as a $10 revenue potential coupon just based on space? Is a 2x2 space for a fast food restaurant coupon priced the same as a 3 night hotel stay coupon?

    What are the rules regarding what the coupon could include? The business might decide to mention that this coupon can be used 10 times instead of paying for 10 coupons.

    Many of those books are mailed out to homes. Does the cost differ if they are distributed by hand? Do you have an idea about usual prices?

    Thanks in advance.
    Regardless of what you are selling...the dollar amount, you are paying per insertion, per month (or however often the coupon book comes out).

    But is it a coupon book? Is it in the shape of a magazine? Is it a set number of copies? or can you choose the number of copies you are in? Can you choose the zip code? Or does everyone get the same distribution?

    Your offer is immaterial. You are paying for space and repetition.

    And like GordonJ said, never discuss how well an ad did. Never discuss your profit.
    Signature
    One Call Closing book https://www.amazon.com/One-Call-Clos...=1527788418&sr

    What if they're not stars? What if they are holes poked in the top of a container so we can breath?
    {{ DiscussionBoard.errors[11425862].message }}
    • Profile picture of the author ribrah2018
      Thank you for your answer. It is a coupon book, that will be distributed over 9 months to 30,000-40,000 homes by hand in a certain area, with the person distributing it explaining what it is. It is a set number of copies because the nature of my partnership cannot allow me to distribute different books to different people.
      {{ DiscussionBoard.errors[11425916].message }}
  • Profile picture of the author eccj
    You have distribution now you just need to find something to distribute. As others knowledgeable in this area have shown, a coupon book probably isn't the thing to distribute.

    I would be looking at who else wants to reach the target and partner with just one business and make it a month to month thing.
    {{ DiscussionBoard.errors[11426083].message }}
Avatar of Unregistered

Trending Topics