Monday, July 20, 2009

TV Media Costs - Unsold Media

We get asked every day about media costs. Has the recession lowered media costs? Where do I find TV and Radio media at the right price? Well, as I always say on this blog -- your media buyer better be smart! Please take a look a our last blog for a full report on third quarter media.

The fact is that there is much unsold media, and we have access to TV media on 98 cable networks with national distribution. Not only is this unsold TV remnant media available at low cost, we can target your best customers with research into age, sex, household income and more. In our database, we have five networks with distribution in over 40 million households, and the other 93 cable networks reach up to 15 million households. You only pay for the viewers who watch, that's how sophisticated the newer systems are!

In radio, our database contains 679 radio stations in virtually every market. Our media buying department can buy remnant TV and Radio direct response and infomercial media for up to 90% off rate card!

The key to lower media costs is uncovering unsold media, understanding the target audience, and buying media at the lowest cost per thousand.

Tuesday, July 7, 2009

SHORT FORM MEDIA REPORT 3RD QUARTER

Third quarter is traditionally the short form media quarter with the lowest rates, highest avails and some unique opportunities. So you would think that this year, especially, that rates would be low, avails high and the networks just hoping to get some business. But there are several factors that affect rates and availability is one of the most important. General advertisers buy quarter to quarter based on “cost per rating point.” And the rates these large advertisers are willing to pay are getting lower each quarter.

It has been reported that the upfront Broadcast Media Market is down three to five percent over last year. When general advertising rates decline like this, broadcasters try to make up the difference with direct response rates. In the current market, the cable networks would prefer to sell inventory at a 20-30 percent discount to general advertisers than it is to sell that same inventory to the DRTV market at a 50-70 percent discount. In addition, more and more general advertisers are placing “hybrid” or blended direct response media buys. They are using DRTV rates and placing “scatter” buys on inventory that may have been earmarked for direct response advertisers. Like we always say on this blog….your media buyer better be smart!