Media Buying for Advertisers




Choosing a media buying services firm could be a difficult and confusing task. This report offers guidance in choosing the buyer that is suitable for your company.



1. Media Buying for Advertisers - Cost



As a general rule, established media buyers and advertising agencies get a 15% discount from television and radio stations. This means that an ad you'd buy for $100 will cost the customer only $85, the difference being retained through the buyer as payment for services. Because of this, using a media buyer shouldn't cost your organization any more than doing all of the work yourself.



With respect to the size of your budget, some buyers may rebate a portion of their discount back to you. While this may seem attractive, it may not be the best strategy - as with most things in life, you receive what you pay for. As you will see from the other five ways to choose a media buying services company, additional services are essential, and will often increase the percentage that the buyer charges you. With large placement budgets, these services are well worth the investment.



2. Media Buying for Advertisers - Media Strategy vs. Media Placement



Of the numerous companies for which we buy media, some of our clients are very educated plus some, quite frankly, are not. That's okay, however, you need to make sure you know where you fall in that category. If you are experienced in buying media, you might find yourself more comfortable with a buying agency that places your buy. However, if media buying isn't your strong suit, you're going to get much better results with somebody who has the ability to help you develop your media strategy.



As you begin the process of choosing your media buying agency, first identify where you need the most assistance. The truth is, anyone with money can purchase media. It takes someone who is good at it to get it done well. Make sure that your buyer recognizes that you expect him or her to conduct the research and verify that the buy will yield the greatest results.



3. Media Buying for Advertisers - Experience



As stated above, anyone can buy media. Obviously, you want someone who will get you the best placements at the most effective price. Unfortunately, it's tough to gauge a good buyer from a bad buyer, and even though media sales reps know, they aren't likely to tell you. When you explore your media buying services agency, ask about the staff that do the particular buying and negotiating. Our agency, as well as many others out there, choose to hire people who have sold media before. Why? Many times, it yields better results.



In negotiating a media buy, it is all about give and take - each side have to win. When the buyer "wins" too much, it makes sense often pre-empts (when your advertisement is pulled and replaced by something else) and less than optimal schedules. If the media outlet wins an excessive amount of, you end up paying more than you should for advertising. Inside experience is very helpful in a buying negotiation. A skilled buyer will understand both sides of the equation. He or she will know where there is wiggle room and how to get the most out of a budget while keeping the integrity of the buy intact.



4. Media Buying for Advertisers - Posting



Perhaps probably the most important services that the media buying agency can provide is posting. Many buyers won't speak with you about posting because, unfortunately, they don't do it. As a matter of fact, few individuals even know what posting is or experience how it works. Here's a quick explanation.



Whenever you buy media, you're charged based on the number of people that the station predicts will be watching a particular show. Of course, like weather predictions, media companies can certainly miss the mark. Sometimes more people watch than were expected; sometimes less people watch. If more people watch, you made a lucky buy and got more than your money's worth. However, if a placement fails to deliver, the media outlet owes you those eyeballs. Of course, the station doesn't tell you when they under-perform; you have to let them know that you want ads to compensate for their shortfall.



Posting is performed on a weekly, monthly or quarterly schedule where the buy is when compared to actual viewers or listeners. When you're short, the station owes you. If you achieve more than you paid for, nothing happens. If you aren't posting, you could be throwing large sums of money away. As a matter of fact, in 2008, due to the writer's strike and also the election, our agency found an average of 25% under-performance on TV for our clients buying in North Carolina. In other words, the majority of television advertisers in New york completely lost 25% of their advertising investment. 25%!



As you may guess, posting takes a great deal of time which is why many buyers don't offer it as being a service (or they provide it, but don't publicize it). Often, when one buyer is much less expensive than another buyer, the less expensive buyer is not posting. In most instances, it's a better idea to pay the higher percentage because you will get back those funds - and more - with the gains you get from posting.



5. Media Buying for Advertisers - Tracking



The best way to know if your advertising is working is to track it. There are many ways to track advertising - some that cost time and some that cost money. Either way, tracking is an integral part to any media campaign.



For many buyers, the only tracking that's done is tracking the buying schedule. While this is very important (see Posting above), tracking the prosperity of your advertising can also be important, as it will help you determine future media buys. Many media buying agencies use creative methods to track success. Sometimes, this might be as simple as setting up a series of unique phone numbers for each ad. In some instances, however, tracking can be very involved.



When you sit down with possible media buying agencies, ensure that you discuss their experience with ad tracking. Often, they will be hesitant to offer their best ideas before you sign a contract, but you should be able to get a feel on their tracking skills.



6. Media Buying for Advertisers - Other Services



You may already know, many media buying companies are self-contained agencies that provide no other services. On the other hand, there are also buyers that are part of agencies offering an array of marketing services. You will find benefits to both models.



"Pure" media buying companies focus on that one aspect of their business, and couldn't care less in which you get your creative or any other services. Depending on your particular circumstances, this could be a good thing.



On the other hand, there are also benefits to dealing with an agency that offers a wide range services including advertising production. First and foremost, integrated agencies are often able to suggest ideas which go beyond just your buy. Further, producing and buying the media helps streamline the process for you, and in most cases, creates a stronger buy since the buyer has an intimate understanding of what the advertising is hoping to accomplish.



In the end, you need to know as much about your media buyer as possible so you can choose which services might be of best use for you. Also, if you are already dealing with an advertising agency, discuss this together with your buyer so that he or she can make sure that you have the best experience possible.