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Scripps Virtual Mall Charges Marketers Slotting Fees

July 29, 2009

Here’s an exact example from which DubLi may have learned.

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Scripps Virtual Mall Charges Marketers Slotting Fees

In an example of a media company tapping an additional potential revenue source over weakening traditional ad models, Scripps Networks is launching via its HGTV website an online shopping portal that’s a form of advertising.

Scripps, which produces shows like Design on a Dime and Curb Appeal, says the mall – called MarketPlaceis not a straight e-commerce play; rather, it’s a type of advertising, writes AdAge. Scripps doesn’t handle the selling and fulfillment process but acts as a virtual storefront, charging a slotting fee for product manufacturers and brands that wish to display their products. The storefront has already attracted 800 vendors, and their slotting fees will likely bring around $4 million in revenue to Scripps in the next year.

“When you have impression-based ad models, there’s only so much inventory available,” said Vikki Neil, VP-online marketing at Scripps. “We were looking for ways to create a large product database that allows users to find products of interest.”

Scripps says a limited number of large, general advertisers can afford to advertise on-air on HGTV – but a much bigger group of smaller companies would also like to target a home-and-garden audience. Scripps charges a $5,000 annual minimum for a small advertiser to list a product in MarketPlace; if the marketer is large and plans to sell a high volume of products, the cost can be as much as $200,000.

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