Rule #1: Everything Is Negotiable
The key is to find out what the real bottom point is on pricing—what the media outlet will really sell it for.
Some programs have higher demand than others, which can mean higher rates. It’s like tickets to the Super Bowl: if it’s sold out and you want tickets, you can probably get them, but you will pay a premium price. Or if you wait until the last minute to purchase airline tickets, prices are generally higher than if you had bought them in advance.
Start With Your Current Media Buy
Take our 60-second advertising checklist to see where you may be overpaying. This is step one in forming a baseline for cost controls. Once you have determined your score, call us, and we will show you how to use the chart to lower your ad costs.
Understand What Drives the Price
Many media companies are controlled by Wall Street with quarterly numbers and budgets to make. If there is unsold inventory, they will almost always sell it at some price because all inventory is perishable. Once the time period has passed, the media seller can never recapture that revenue.
Most media groups teach yield management to their sales managers—how to maximize the inventory they have left. Don’t be intimidated by what a media company says it won’t do. We’ve walked away from placing thousands of dollars in business and then received a manager’s call to see if there is any last adjustment that can be made to get our business.
Four Ways We Negotiate More Value
Radio provides a useful example of these techniques, which can also apply to other media buys.
Build a Smarter Spot Mix
Convert schedules to a blend of non-preemptible and preemptible spots so that you can pay lower rates overall and achieve a higher number of ad impressions for the same budget.
Buy When Demand Is Lower
Consider the first two weeks of the month when demand is lower than in the last 15 days. Certain categories, such as insurance companies, buy significantly more inventory in the last two weeks to make their sales numbers.
Ask for Added Value
Insist on value-added merchandising, including free 5-second or 10-second announcements as part of your buy.
For example: “This sports update is brought to you by the name of your business and what you do.”
Manage Preemptions Daily
Move preempted dollars from one station to another. Daily management helps protect your reach and frequency while keeping your dollars on stations that fit your demographic and qualitative target.
Listen: Getting More From Your Radio Budget
Hear an example of how you may be overpaying for your advertising.
Let’s Review Your Advertising Buy
Get a free advertising analysis and explore ways to make your media budget work harder.
Or call (615) 646-9636.