Newspaper advertising remains a powerful tool for businesses looking to reach a wide audience, but understanding the cost structure is essential for optimizing your ad budget. The cost of a newspaper ad can vary significantly depending on several factors, including the publication’s circulation, placement, ad size, and even the day of the week. Whether you’re considering a local ad in a community paper or a full-page feature in a national publication, knowing how these variables affect pricing will help you make informed decisions. In this guide, we’ll explore the key elements that influence newspaper ad costs and provide tips on how to maximize the value of your investment. Here’s a step-by-step guide to help you understand the process:
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How to calculate newspaper ad cost?
Step 1: Determine the Ad Size
Newspaper ads are typically measured in column inches. A column inch is a unit of space that is one column wide and one inch height. To calculate the size of your ad, you need to know the number of columns it will span and its height in inches.
Formula: Total Ad Size (in column inches)=Number of Columns×Height (in inches)
Step 2: Choose the Placement
The placement of your ad within the newspaper can significantly impact the rate. Common placement options include:
- Front Page
- Back Page
- Second Page
- Third Page
- Business Page
- Sports Page
- Inner Pages
Ads on the front and back pages are usually more expensive than those on the inner pages.
Step 3: Select Color Options
Advertisements can be either in color or black and white. Color ads are generally more expensive due to the additional printing costs.
Step 4: Check the Rate Card
Newspapers have rate cards that detail the cost per column inch for different placements and color options. Rates can vary significantly between newspapers. Here’s a simplified example:
Example Rate Card:
- Front Page:
- Color: 30,000 taka per column inch
- Black and White: 22,000 taka per column inch
- Inner Pages:
- Color: 10000 taka per column inch
- Black and White: 6500 taka per column inch
Step 5: Calculate the Basic Cost
Using the rate card, calculate the basic cost of your ad.
Formula: Basic Cost=Total Ad Size (in column inches)×Rate per column inch
Example Calculation:
- Total Ad Size: 5 columns x 10 inches (height) = 50 column inches
- Placement: Inner Page
- Color: Black White
Basic Cost=50 column inches×10,000 taka per column inch
=500,000 taka
Step 6: Additional Charges
Additional charges may apply for special features such as:
- Content development cost: 5000 taka
- Design Cost: 2000 taka.
Example Additional Charge Calculation:
- Cost with Charges: 500,000 taka + Content Development cost + design cost.
= 500000 taka + 5000 taka + 2000 taka
= 507000 taka.
Step 7: VAT (Value Added Tax) and AIT (Advance Income Taxes)
In Bangladesh, a 15% VAT is typically added to the cost of the advertisement.
AIT is 5% is added to the advertisement cost.
Formula: Grand Total Cost= Cost with charges+VAT + AIT
Example VAT Calculation:
- Basic Cost with charges: 507000 taka
- VAT: 15% of 507000 taka = 76,050 taka
Example: AIT Calculation
- Basic cost with VAT = 583,050 Taka
- AIT 5% = 29152.50 taka.
Grand Total Cost: Cost with charges+VAT + AIT taka
= 507000 + 76050 + 29153 taka
= 612,203 taka
Summary
- Determine the Ad Size: Calculate the number of column inches.
- Choose the Placement: Decide where the ad will appear.
- Select Color Options: Choose between color and black and white.
- Check the Rate Card: Find the rates for the selected placement and color.
- Calculate the Basic Cost: Multiply the ad size by the rate per column inch.
- Add Additional Charges: Include any extra costs for special features.
- Add VAT: Calculate and add the 15% VAT.
- Add AIT : Add extra 5%
By following these steps, you can accurately calculate the cost of placing an advertisement in a Bangladeshi newspaper. Always refer to the specific rate card of the newspaper you intend to advertise in, as rates and policies can vary. If you want place an advertisement in the printed version of any newspaper in Bangladesh, please contact us.
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