When and how to raise your advertising price?
Increasing your advertising price is a necessity for the success of your business but it may also seem like a difficult thing to inform your clients and business partners about because you fear that you may lose them. Here are some things to consider when choosing the right moment to increase your prices and how to deliver the information so that the risk of losing any client is kept to a minimum.
Do Some Strategic Planning
The increase in your ad rates should be justified. Think about the factors that determine the quality of a website or media outlet and how you have improved in these areas. Once you understand your performance better, you will become capable of taking the right pricing decisions. Consider the following:
- Is your website traffic increasing?
- Do you have a loyal audience that participates in the discussion on a daily basis and contributes to it?
- Has the quality of your content improved?
If the answers to these questions are yes, then it may be time to reconsider your current advertising price. In addition to these general improvements above, some advertisers might expect more from you after a rate increase. One way to address that is guaranteeing a specific audience. A loyal audience is equally valuable. The calculation of how much you plan to increase should consider your operation costs and budget for growth. Think about advertising rates that will help you cover expenses and provide more funding for upcoming expansions. Examine your current revenue reports to figure out how much money you will need for business operations in the future. The additional ad revenue is important to run and grow your business.
Give Customers Some Explanation
There should be some reasoning behind your pricing and the timing of the increase. Tell clients why they need to pay more and what they will be getting out of the price increase. You can give them guaranteed impressions or page views. Whenever promising something, however, make sure that you are capable of delivering. Advertisers today have many tools that they can rely on to assess the performance of their marketing campaign. Refrain from making big promises if you are incapable of delivering. If your website is still lacking traffic or a highly desirable audience, you should probably postpone the price increase. Make sure that your clients know from the very beginning that your advertising pricing is not static. Letting them know that there could be adjustments will give them time to think about their own marketing budget and this ensures both sides are happy with the deal. You may also think about a loyalty discount for the long-term clients. A discount for existing clients may be the simplest way of introducing the new advertising price without losing the advertisers that you are mostly dependent on.
A Professional Presentation is the Best Way to Inform Your Clients
Your clients deserve a good presentation that includes your reasoning and the benefits that they will get out of the price increase. Provide specific data and charts from your ad server
clearly showing your increase in traffic and your growing loyal audience. Present any new high-quality enhancement that you have added to your website such as a new section that is getting a high number of visits. Also, make sure that your website is updated and has detailed information about your current advertising rates. Be sure to call loyal customers to give them a chance to ask you any questions about your presentation. A professional presentation is your strongest tool in helping you justify your decision. Have your team members review your presentation and provide you feedback. Ask yourself, "if you were provided with the presentation, would you be okay with the price increase?" If you cannot convince yourself of the price increase, you will never be able to convince your clients.
Be Confident about the Price Change
It is imperative that you present the change with confidence. Some clients may be surprised or even upset with you but others will understand that high-quality advertising has its price. The information should be presented as a positive change since your clients advertisements will now be shown to a higher number and higher quality audience, which is what all advertisers want. Keep in mind that you have the right to increase your advertising price and must do so to be able to run and grow your business. In a lot of cases, it is costly to maintain a high traffic website and the extra advertising revenue will help offset such cost. Some of the clients that you have good-working relationship might already expect such a change as they see your website grows and gets busier. There is no need to apologize to anyone or feel pressured to provide deep and unreasonable discounts in order to keep a client. If your performance is really that good, new advertisers will find you soon and show their interest in working with you.
September 26, 2016 (first published July 2013)