Posted: Sat Feb 28, 2009 4:45 am Post subject: Expert Offers Advice For Improving Cost Efficiency
It is well documented that companies who raise their “Share of Voice” during a recession are more likely to emerge from the recession with a higher Share of Market. Share of Voice can be increased by spending more ad dollars-- or by spending the existing ad budget more cost efficiently (lower ad rates). Since 2009 is a media buyers' market, an opportunity exists for savvy advertisers to increase the cost efficiency of their media buys by paying less for audiences reached. (see thumbnailmediaplanner.com for 2009 media costs.)
Detroit, February 28, 2009 -- Buying media (advertising time & space) is a lot like buying a car. If you are buying a car, many factors affect the ultimate price you pay: your negotiation skills, type of vehicle and brand, age, mileage, depreciation rates, dealer margins, and supply and demand for particular vehicles. The more dealers are hurting for sales, the better the price you should be able to negotiate.
If you are buying20media, you also have to negotiate the price with sellers. The ultimate price will be affected by your negotiation skills, the type of medium (e.g., daytime vs. prime time TV), size of ad, when or where the ad runs, how much inventory is available, and supply and demand conditions for the type of media you want to buy.
However, there is also a key difference. While auto inventory can sit on the lot until sold, advertising time and space are perishable. Yesterday’s unsold spot or space unit are gone forever. Yesterday’s unsold spot has NO value. The more the media are hurting for sales, the better the price (measured by CPM or CPP) you should be able to negotiate.
Soft media sales in 2009 creates a major buying opportunity for smart marketers who are able to capitalize on the strongest buyers’ market in memory. Buying media exposure at lower cost means that advertisers can maintain Share of Voice at lower cost-- or can increase Share of Voice at the same cost. Either way, it boils down to an opportunity to buy exposure in media with much greater cost efficiency which will increase the impact of the marketing plan.
What should buyers expect to pay for media exposure in this economic climate?
The 2009 Thumbnail Media Planner (www.thumbnailmediaplanner.com) provides projections of the maximum prices buyers should expect to pay, based on forecasts from 2020:Marketing Communications LLC. The Thumbnail Media Planner provides a comparison of estimated 2009 media costs by type of medium (network, cable, and spot television, radio, newspapers, magazines, out of home, internet and many non traditional media.
According to Ron Geskey, publisher of the Thumbnail Media Planner, aside from being aware of opportunities presented by market conditions and having media negotiation skills, there are several additional ways to improve media cost efficiency and effectiveness, e.g.,
1. Negotiate for the lowest possible price plus maximum media engagement potential, e.g., optimize ad positioning for recall and communication
2. Adjust your media mix to concentrate in the most efficient and engaging media for your company or brand
3. Select the most cost efficient media vehicles by analyzing alternative programs, stations, magazines, internet options, or locations
4. In this economy, media will have a lot of unsold inventory at the end of every day. Tip: Hold part of your budget back for opportunistic buying. Encourage media to offer you their last minute fire sales. Be ready to buy on the spot, potentially at 80% or greater savings vs. rate card.
What is The Thumbnail Media Planner?
Published annually since 2003 by 2020:Marketiung Communications LLC, The Thumbnail Media Planner is a 104 page pocket reference to USA Media. It includes current media cost estimates, media audiences, and media research. 2020:Marketing Communications LLC is an advertising & marketing consulting and publishing company. CEO Ron Geskey has over 30 y ears of media and account management experience at major agencies and blue chip clients.
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