From our newest member Mike Nelson:
Ok need some help! I am the sole Advertising executive for an AM/FM (plus a translator) and a community access TV channel in a Rural part of KY (if KY wasn’t Rural enough). How can I convince my owner and GM to allow two for one spots (outside of the political window) for big advertisers and or agencies...
We are looked over because we don’t offer what “added value” or a BOGO on any package. I would like to hear from those who can help me make an argument for introducing it.
at November 2, 2017 12:54 PM PDT
From Diane Scarpelli:
I can see why your owner/manager is resisting to your giving 2-for-1. A straight up carte blanche on this is just not a good idea.
Agencies: generally are looking for (a) 20% bonus spots on schedule - these can run M-Su 6a-12m, (b) sponsorship of news, wx, (c) website/social media i.e., logo on station website with link, email blast, multiple facebook. Place a c lear value on whatever you put in. If it's a schedule, run a 'bonus' schedule separate from the buy so they see what they got and can communicate that to the client. They're interested in CPC - cost per commercial. Look as value added in this case as maintaining rate - bonus improves CPC without effecting rate.
Direct: bonus spots/value added is a negotiation tactic and must be used judiciously. To earn bonus spots the client has to provide some concession as part of the negotiation... they agree to run 1 year instead of 6 months, they agree to a higher frequency ($) for their sale schedule, et al. They give to get. This is something they understand as retailers and service providers. They do it all the time with their customers. So every presentation is 2 or 3 levels - the more they buy, the higher the frequency, the more 'bonus' you are able to offer as incentive to do more. And the bonus can be geared to the client - overnights for a 24-hour gym, weekends for a restauirant or retailer.
Your owner/boss is more likely to approve this kind of bonus planning because it generates more client activity - you're not bonusing to get business, you're bonusing to reward business.
I worked for about a year for a company that used the 2 for 1 or 3 for 1 tactic all the time. Prime spots were around $75 but bonus an equal number of night or weekend spots and an equal number of overnights. The idea is we are going to offer you $25 spots!
They thought it worked, but it limited inventory that could have been sold and it was also deceptive. I've seen TV stations offering packages like this for years too, where you get a little of what you really want and then bonus all the rest in crappy times or shows.
I focus on getting results and that means best placement for results. Then I may add bonus spots on my own, but rarely to get someone to buy. Those bonus ads are a nice thank you gift for them and insurance for me.
That being said, I just negotiated last month with an agency that wanted $35 rates where I had told him $125. I looked at out inventory situation and saw that if I was creative and charged $70 for 1/2 the ads and bonused the other half and expanded the dayparts on all, it might work. What sealed it, was he agreed to pay in advance $6K for 8 weeks and I had the inventory.
