NewTeeVee Breaks Story of Zadby's New Pricing!

NewTeeVee, one of the most respected news sources on new media, broke the story today of Zadby's new pricing.

Beau Brewer, Zadby's General Manager, is encouraged by the positive press and the potential for the pricing changes to make the Zadby marketplace more efficient: "We've been quietly piloting the changes for some time, and it's great to get the word out about some of the new ways Zadby is making this market work better for everyone."

The three pricing changes include new CPM guidelines, new payment guarantees, and new rules for pre-allocation of funds. Each of those changes is explained in more detail below.

The new CPM guidelines reflect a sliding scale that takes into consideration the relative difficulty of a minor product placement versus a completely custom video. The guide suggests a range from a $15 CPM for product placements of 5 seconds or less to a $50 CPM for 100% custom branded videos. Of course, these new guidelines are merely suggestions based on information gathered from the Zadby producer community. A Brand can always adjust the suggested CPMs upwards or downwards depending based on factors other than branding prevalence, including the characteristics of the target audience and the difficulty of incorporating a particular product into a video. A more detailed document of various pricing options is available upon request, and Zadby pricing consultation is always available.

The payment guarantees only apply to Branded Content videos (those videos that require more than 15 seconds of branding) and only in those cases where the Brand rejects a finished video after approving the original concept proposal. The change is based on feedback from the producer community that while producers could easily cut or reshoot minor product placement scenes if their video submissions were rejected, a custom Branded Content video represented a lost investment if they weren't given the chance to earn revenue from distribution. After considering the feedback, Zadby quickly realized that the producers were right. Going forward, Zadby Branded Content Commissions will compensate Producers with a "kill fee" if the Brand rejects the finished video after approving the proposal. The "kill fee" will vary slightly but will usually represent 30% of the funds a producer could expect from a successful video.

The new rules on pre-allocation addresses a concern from top producers that a Commission Budget might be entirely paid out for another producer before their video submission could get traction. This concern was enough to stop some top producers from submitting videos to commissions that were perfect fits for their talents, and it had to be addressed. Going forward, Zadby will allocate a pool of money out of the budget for producers whose concept proposal is approved by the brand. The dollar figure for each pool will be enough to pay producers for approximately 70% of their average views regardless of how other producers' videos perform. Zadby will ensure that the budget is never more than 70% pre-allocated to producers, so at least 30% of the budget will be available on a competitive basis for top performing videos.

More information on new and existing Zadby pricing can be found in the Zadby FAQ section for both Brands and Producers.