Marketing Communications

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Marketing Communications
Advertising Media

The formula is:

1,000,000 × Rate per line

Quantity circulation = milline

For example a newspaper with 2 million circulations and a rate of $2.00 per line will have its milline as
calculated using above formula:

1,000,000 × $2.00

2,000,000 = $1.00 milline rate.

The smaller the circulation of a newspaper, the higher the milline rate. Using this method gives a basis
of comparing rates of papers having different rates per line and different circulation.

7. THE SPACE CONTRACT – THE SHORT RATE: When a paper gives a scale of discounts
   depending on the amount of lineage run during the next 12 months, you must first enter
   upon a SPACE CONTRACT which means an agreement of the rate you will finally pay for
   any space that has been run during the year in agreement. The two steps to be taken are:
   
   
   1. You estimate the amount of space you think you will run and agree to any rate adjustments
      needed at the end of the year. The selected rate will be used to bill you at the end of
      the year.
   
   
   2. At the end of the year, the total lineage is added, if the total run does not meet agreed
      rate, you have to pay at the higher rate charged for the number of lines actually ran. The
      amount is called the SHORT RATE.
   
   
   
   

EXAMPLE: A national advertiser plans to run advertising in a paper whose rates are as follows:

Open rate - $1.45 a line

1000 lines - $1.42

5000 lines - $1.39

10,000 lines - $1.36

The advertiser expects to run a least 5,000 lines and signs the contract at the N1.39 (5000 lines) rate –
subject to end of year adjustment. At the end of 12 months, he only ran 4100 lines; his bill will be
computed at the end of the year as:

Earned rate -4100 line @ $1.42 per line $5,822.00

Paid rate -4100 line @ $1.39 per line $5,699.00

$ 123.00

If the space run had reached the 10,000 lines rate ($1.36) the advertiser would have received a rebate
of N300.00.