Tuesday, June 17, 2008

June Mentoring Assignment

Now that we have a photo selected for our shoe client, this month we need to calculate a usage license.

For purposes of this quoting exercise, you work for the stock agency representing this image, which falls under a Rights Managed agreement. Your agency receives 60%; the photographer receives 40% of the total license.

The art buyer has told you (under the radar) that the pick-up photo budget for this advertising campaign is USD $18,000. They have asked for Industry Exclusive for North American (NA) footwear companies. He’ll need to see your breakdown for each usage so he can present it to his boss who will determine what she may want to adjust or drop. But everyone really loves the photo ;-).

Your task: Determine the costs (break it down) for all six elements of usage. Can you get to $18K without one usage being under priced if it was a standalone quote?
  1. Three consumer and three trade magazines, single placement on any interior page, up to full page image, one insertion per publication, one year, total circulation all magazines up to 12 million
  2. Art display, up to 4'x6', one version, in-store poster at 150 locations, two years
  3. eNewsletter usage, three electronic issues, six months, total 2 million circulation
  4. Company website, home page for six months up to ½ screen, home page spot/link for six months up to 1/8 screen, secondary pages for one year, up to ¼ screen
  5. Web banner ads, all Internet distribution formats, multiple placements on any pages, size up to 300 x 600 pixels banner, single version, two years
  6. Trade show presentation, projected display at booth, single placement on screen, looped, up to full screen image, single version, any quantity of shows up to six months
You can use online pricing or other tools to check each individual license. There is no deadline or winner, but if you have questions or want to show me what you came up with, my contact info is over on the left. As always, should you or any of your force become caught or killed....

That’s $10,800 for the stock agency and $7,200 for not having to figure all of this out.