News Ltd’s The Australian newspaper is first major news masthead to launch advertising packages to agencies and marketers late last month in the country. I saw a preview of the application, monthly pricing and advertiser packages a few weeks ago and found some interesting points worth sharing:
- The Australian iPad App overview: traditional looking press format (stories prioritised by editorial) with multimedia (video, rich imagery, audio).
- App price: I can’t share specifics due to confidentiality agreements, but it is significantly less than USA-sister publication the Wall Street Journal’s US$17.99 per month.
- iPad ads are full-page interstitial and exclusivity in category (i.e. finance, automotive, etc) – but will not, initially, be able to link directly the advertiser’s website. This suggests News Ltd does not want to be initially weighed down or scrutinised by media agencies obsessed with ‘click-through-rates’ on ads when they may not necessarily need or want them to. This could have the effect of depressing the rates at which advertising can be charged as advertisers and agencies measure the success of their advertising on the basis or instant and direct response to advertising, which is only partially representative of the influence of advertising.
- News Ltd offered four advertiser packages of AU$250,000 – split between press, internet and iPad commitments, the latter of which totals $50,000. So 20% of the iPad ad package actually goes specifically towards advertising within the iPad – the association of innovation with the launch is being pitched as a large benefit, though this is debatable.
- Forecast reach: none given. This will be second of the two main concerns for interested advertisers. My forecast of sales in Australia will be 50,000 – 100,000 within three months, with The Australian achieving 15,000 – 20,000 monthly subscriptions within this time.
- Partner packages are for a term of three months, with first right of refusal for following three months.
- Launch delays: issues affecting the launch of the app is launch of the iPad itself in Australia – which has been pushed back to the end of May due to strong demand from North America. News Ltd are acutely aware of this, and are thus trying to be as flexible to advertisers as possible.
So how does the offer rate? About 3/5. Positive in terms of speed to market, category exclusivity and flexibility of term length. Negatives are limited advertising opportunities (initially) and bundling in 80% non-iPad media spend into the deal, though this is a moot point for most large agencies who could link pre-planned budgets into the deal.
This is an edited extract of a note to advertiser clients at ZenithOptimedia AU and Publicis Mojo. News Ltd is both a client of, and supplier to, my employer and my work from time to time involves consulting to News Ltd.
